Shares of Coinbase Global Inc. surged on Friday after JPMorgan Chase upgraded the crypto exchange, citing new revenue opportunities tied to its Base network and changes in its USDC rewards program.
The bank raised its rating on Coinbase from “Neutral” to “Overweight” and boosted its price target to $404 per share, signaling roughly 15% upside from current levels.
JPMorgan Highlights Base Network Potential
JPMorgan analysts said Coinbase is increasingly capitalizing on its Base layer-2 blockchain, exploring new ways to extract value from the platform’s rapid growth.
The bank estimated that a potential Base token could represent a market opportunity between $12 billion and $34 billion, with Coinbase’s retained value possibly reaching between $4 billion and $12 billion.
Analysts noted that if a token is launched, distribution would likely focus on developers, validators, and the broader Base community rather than retail investors.
Margin Boost from USDC Rewards Changes
The report also highlighted the potential for margin expansion as Coinbase adjusts its USDC rewards structure.
According to JPMorgan, Coinbase may reduce interest payouts for general users while reserving those rewards primarily for Coinbase One subscribers.
Such a shift could add around $374 million in annual earnings, based on current yields and interest rates.
Following the upgrade, Coinbase shares jumped more than 9% on Friday to about $353.
The stock has now gained approximately 42% in 2025, pushing the company’s market capitalization to roughly $90.6 billion.
Earnings Outlook and Broader Market Context
Coinbase is set to release its third-quarter earnings report on October 30.
Analysts polled by Zacks Investment Research expect earnings of $1.06 per share — a 71% year-over-year increase — on revenue of $1.74 billion, up 44% from the same period last year.
In the previous quarter, Coinbase missed Wall Street’s profit expectations but saw solid operational progress, including a rise in stablecoin balances and higher income from stablecoin-related services.
The company’s subscription and services division remains a key growth driver, projected to contribute between $665 million and $745 million in Q3.
Regulatory Milestones Support Growth
Coinbase has also benefited from regulatory developments in Washington.
The company welcomed the approval of the GENIUS Act, which established a clearer legal framework for stablecoin usage in the United States.
In addition, the House passed a broader market structure bill seen as an early step toward comprehensive crypto regulation.
With JPMorgan’s bullish reassessment and favorable regulatory signals, Coinbase enters its next earnings report with growing investor optimism and strengthened business fundamentals.