Coinbase (COIN): Still a Crypto Front-Runner

September 21, 2023

Despite the recent chill in the crypto market, Coinbase stands out as a beacon of potential, with its user-friendly platform and increasingly diversified revenue streams painting a promising picture for the future.

Here’s why we are still bullish on COIN!

The DeFi Surge and Coinbase's Pivotal Role

Decentralized Finance (DeFi) is not just a buzzword; it's a transformative force. The total value locked in DeFi contracts has skyrocketed over the last few years.

Coinbase, with its user-centric approach, is at the forefront of this movement.

It's not just an introduction to the world of crypto; it's evolving into a comprehensive DeFi hub. As more users gravitate toward decentralized financial solutions, Coinbase's strategic positioning in the DeFi ecosystem makes it a standout player.

Diversification Amidst Challenges

Yes, Coinbase faced a dip in Q2 earnings, mirroring the broader "Crypto Winter." However, it's resilience and adaptability have caught our eye. By slashing operating expenses by half and diversifying revenue streams, Coinbase showcased its strategic agility.

The fact that non-trading revenue now surpasses trading revenue speaks volumes about the company's foresight.

Its recent launch of Coinbase Prime's institutional-grade Web3 Wallet further underscores its commitment to offering a holistic crypto experience.

Bitcoin's Undying Lure

The allure of Bitcoin is undeniable. Even as Coinbase diversifies, Bitcoin remains a significant performance driver, accounting for 40% of 23Q2 trading volume.

With a +28% YoY buzz increase, the cryptocurrency's adoption will undoubtedly bolster Coinbase's prospects.

Ethical Controversies

No journey is clear of speed bumps.

Coinbase's recent ethical conundrum, where it inadvertently profited from a security breach at Curve Finance, has raised eyebrows.

While debates about corporate responsibility ensue, it's important to look at how COIN users have responded…and the data suggests no material impact, with sentiment actually registering +2 points higher on a YoY basis.

Key Metrics Snapshot:

  • Mentions: Up by +7% QoQ but down by -22% YoY.
  • Happiness stands at a positive 58%, marking a +2% YoY increase.
  • Visits have seen a -23% YoY decline, aligning with the drop in mentions.

Bottom Line

Our outlook on COIN remains intact.

Coinbase, with its strategic moves, adaptability, and commitment to enhancing the crypto experience, is a long-term gem. The road might have its challenges, but we're confidently bullish on Coinbase's journey ahead.

As the crypto frontier expands, Coinbase is poised to lead the charge.

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