After the approval of Spot Bitcoin ETFs , Coinbase has seen a surge in dominance within the U.S. market with respect to BTC share.
This increase may be attributable to Coinbase’s decision to act as a custodian for eight of the eleven recently authorized Bitcoin ETFs.
Coinbase’s market share of Bitcoin has increased dramatically from 47% to 60% in the past three months, according to data from Kaiko, a provider of blockchain data.
This substantial increase highlights Coinbase’s expanding influence and the effect of the approval of Spot Bitcoin ETFs on cryptocurrency exchange platforms’ market positions.
At this time, Bitcoin ETFs issued by BlackRock, Grayscale, Ark 21Shares, and Franklin Templeton, among others, are held in custody by Coinbase. In addition, Coinbase is anticipated to expand its crypto ETF custodian services in anticipation of Spot Ethereum ETFs.
Additionally, the recent growth in Coinbase’s market share of Bitcoin had a significant impact on its services, resulting in a substantial disruption. Brian Armstrong, chief executive officer of Coinbase, attributed the recent disruption to the unanticipated upswing in cryptocurrency market activity.
Additionally, he underscored that while the team had made preparations for a tenfold surge in volume, the actual volume surge caused by the Bitcoin price surge resulted in the Coinbase application crashing.
Additionally, a significant decrease in the value of Bitcoin occurred on February 28 between 12:15 p.m. ET and 12:30 p.m. ET, falling from $64,000 to $59,000, representing a fluctuation of 9%.
It was postulated that the abrupt decline in value could be attributed to the service disruption on Coinbase, which resulted in users having no funds in their accounts.
Goldman Sachs Increases COIN Stock Rating
Goldman Sachs updated its investment recommendation for Coinbase stock on Thursday, March 7. The firm upgraded the stock from “Sell” to “Neutral.”.
Concurrent with the transition, the investment firm established an updated target price for the cryptocurrency exchange platform’s stock at $282. This upgrade reflects recent trends observed in the cryptocurrency market, notably characterized by the Bitcoin price reaching unprecedented heights.
Daily trading volumes on Coinbase have increased to levels not seen since 2021, coinciding with the rating upgrade. As a result, Goldman Sachs has increased its revenue projections for the company by 48% since early February. Furthermore, the increased volumes have played a crucial role in the company reassessing Coinbase’s stock.
The revised outlook by Goldman Sachs on the COIN stock is attributable to the cryptocurrency market’s enhanced performance and adoption metrics.
The analyst emphasized the significant rise in projected revenues that can be ascribed to the recent upswing in the prices of Bitcoin, alternative cryptocurrencies, and trading volumes.
The revised price target of $282 represents a significant deviation from the company’s previous assessment of Coinbase’s worth. In light of the current developments in the Bitcoin and broader cryptocurrency markets and the trading activity on the platform, this update indicates a more optimistic short-term prospect for the CEX.
