JPMorgan analysts believe Coinbase could unlock a massive new revenue stream by launching a token tied to its Layer 2 blockchain, Base - potentially adding as much as $34 billion in market value.
In a research note published Friday, the bank upgraded its outlook for Coinbase, lifting its price target for the company’s stock to $404 by December 2026. The analysts said Coinbase is beginning to resemble a “multi-platform ecosystem” rather than a single exchange, citing its expansion into stablecoin yields, decentralized trading, and the continued rise of Base.
Base: From Layer 2 Experiment to Billion-Dollar Network
Coinbase’s Ethereum-based Layer 2, launched in August 2023, has quietly grown into one of the busiest blockchain networks in the world. Data from DeFiLlama shows Base now hosts over $5 billion in total value locked (TVL) and regularly processes more than 9 million daily transactions – activity that rivals major DeFi chains.
According to JPMorgan’s model, tokenizing Base could allow Coinbase to “equitize” the network’s success, effectively capturing its value on-chain. The analysts estimate that such a token might reach a market capitalization between $12 billion and $34 billion, with Coinbase retaining roughly 40% of supply – translating into $4-12 billion in potential equity value.
Although Coinbase executives haven’t confirmed a launch date, recent statements suggest the idea is under active consideration. At the BaseCamp summit in Vermont last month, Base lead Jesse Pollak hinted that a token could help decentralize the network and “expand opportunities for builders.” CEO Brian Armstrong later noted that while discussions are ongoing, there are still “no definitive plans.”
Stablecoin Yields and On-Chain Expansion
Beyond Base, JPMorgan also sees room for Coinbase to boost profits through its USDC yield program. The firm currently distributes most of the roughly $400 million in annual interest from Circle’s stablecoin reserves back to users as rewards. Analysts say that by shifting those yields to premium subscribers under a model similar to Robinhood Gold, Coinbase could retain as much as $374 million per year in additional income.
At the same time, the integration of a decentralized exchange (DEX) aggregator inside the Base app is viewed as a strategic hedge against the growth of decentralized trading. DEX platforms now account for nearly a quarter of total spot trading volume, a trend Coinbase appears eager to capture rather than compete against.
Coinbase Stock Outlook
Coinbase shares currently trade near $355, not far below their record high of around $430 reached in July when the GENIUS Act – a major stablecoin regulation bill – was passed. With regulatory clarity improving and new monetization paths emerging, JPMorgan believes Coinbase’s long-term value could rise significantly as it evolves into a full-fledged Web3 financial platform.
