Coinbase Base Token Value Could Surge to $34B, JPMorgan Says
- JPMorgan says Coinbase’s Base token could reach a $34 billion market value over time.
- Coinbase may retain 40% of the Base token, worth up to $12 billion in total equity.
- Limiting USDC yields could add $374M yearly, improving Coinbase’s profit margins.
Coinbase Global could unlock as much as $34 billion through a Base network token, according to JPMorgan. The bank raised its rating on Coinbase to “Overweight” from “Neutral” and increased its December 2026 price target to $404 per share, indicating new monetization prospects and reduced risks as the company expands its Layer 2 ecosystem.
Base Network as Key Growth Driver
JPMorgan analysts said the proposed Base token could “equitize the success” of Coinbase’s Ethereum-based Layer 2 network, which launched in August 2023. The network has surpassed $5 billion in total value locked and handles over 9 million daily transactions, according to DefiLlama. Analysts projected that a future Base token could reach a market cap of between $12 billion and $34 billion over time.
Under the model, Coinbase could retain about 40% of the token supply, representing an equity value between $4 billion and $12 billion. The analysts said this would offer Coinbase a new monetization stream alongside its onchain trading and stablecoin initiatives.
Coinbase executives have also hinted at exploring a native Base token. At the BaseCamp conference in Vermont last month, Base creator Jesse Pollak noted that a token could enhance decentralization and broaden opportunities for developers.
CEO Brian Armstrong later confirmed that Coinbase is exploring the idea, though he emphasized there are “no definitive plans” yet. This possible launch follows Base’s fast increase among Layer 2 networks.
Built on Ethereum, Base aims to make blockchain transactions faster and cheaper while maintaining strong security. The network’s performance has drawn increasing activity from developers and decentralized applications. Analysts said such growth strengthens the case for Coinbase to capture part of that momentum through a native token.
USDC Yield Changes Could Lift Earnings
Besides the Base token, JPMorgan pointed to Coinbase’s U.S. dollar stablecoin (USDC) yield program as another potential source of higher margins. Currently, Coinbase distributes most of the $400 million annual interest it earns from Circle’s USDC reserves to customers as rewards. The analysts said the company is now considering limiting those payouts to Coinbase One subscribers.
If the new structure is implemented, Coinbase could retain about $374 million in earnings yearly at current interest rates. The model would resemble the premium reward tiers used by platforms like Robinhood Gold. JPMorgan said such changes could expand margins, particularly as Coinbase diversifies away from transaction-based revenue.
In addition, Coinbase plans to integrate a decentralized exchange (DEX) aggregator into the Base app. This feature is designed to capture trading activity from users migrating toward decentralized platforms, which now account for roughly one-quarter of total spot crypto trading volume. Analysts said this could help Coinbase maintain its competitiveness in a shifting market structure.
Related: Coinbase May Outbid Mastercard for $2.5B BVNK Stablecoin Buyout
Coinbase Stock Rises Ahead of Q3 Earnings
Following the JPMorgan upgrade, Coinbase shares surged more than 9.82% on Friday to $354.46, bringing the company’s market cap to about $90.6 billion. The rally came just days before the firm’s upcoming third-quarter earnings release, scheduled for October 30.
According to Zacks Investment Research, analysts expect Coinbase to report earnings of $1.06 per share on revenue of $1.74 billion, representing a 71% and 44.1% year-over-year increase, respectively. The firm’s subscription and services segment is projected to contribute between $665 million and $745 million for the quarter.
Earlier this year, Coinbase also acquired Echo, a digital asset fundraising platform, for $375 million. The acquisition aims to build a “full-stack” solution for crypto fundraising, resembling earlier token sale models that once defined the industry’s growth phase. Cobie, Echo’s founder, said the platform will continue operating under its current brand but integrate with Coinbase’s infrastructure over time.
JPMorgan’s revised valuation places Coinbase at 50 times its projected 2027 earnings, factoring in potential revenue from the Base token and changes in its USDC program. Analysts said the company’s broader integration of trading, custody, and onchain services positions it well to sustain profitability amid changing market conditions.
Meanwhile, Coinbase’s ongoing developments, from Base’s expansion to its growing yield model, show the firm’s drive to diversify revenue and strengthen its blockchain infrastructure. The prospect of a Base token, together with strategic product changes, shows the company’s growing role in influencing the next phase of digital asset adoption.
