Coinbase (NASDAQ: COIN) is the U.S. crypto standard. It outlasted FTX and Binance, which was fined $4 billion and expelled.
With its reputation and technical strength, Coinbase is entering new industries and products like derivatives and mainstream products. Coinbase is the main custodian of crypto exchange-traded funds (ETFs), works with significant institutions as a trading platform and custody for its customers, and developers use its tools and Base blockchain. Coinbase has many benefits, but these stick out.
Scams like FTX have plagued crypto for years. Coinbase has slowly become a trusted participant in the crypto industry by following the law or contesting it where it's ambiguous, like in the U.S.
This means Coinbase will grow slower in booms but survive downturns. Investors found that trade-off worthwhile. Coinbase is the custodian of billions of dollars in ETFs, and I expect it will be a crucial blockchain development partner. Whatever Coinbase does next, being trustworthy is important.
A recovering exchange In recent years, rivals' aggressive products and leverage overtook Coinbase's exchange business. Aggression can backfire, as FTX and Binance showed.
Over the past year, Coinbase has regained market share and is now second internationally behind Binance. Exchange revenue rose 64.3% to $529.3 million in the fourth quarter of 2023, and trade activity appears to be rising in 2024. Coinbase's growth goes beyond consumers. This is a trusted partner for institutions, which will help the company develop.
Stablecoins are lucrative. Coinbase helped create USDC, the seventh-largest cryptocurrency by market valuation. Coinbase makes millions off USDC asset interest. In Q4 2023, Coinbase earned $171.6 million from stablecoins, predominantly USDC. USDC-run Circle is also owned by the corporation. As blockchain stablecoin use rises, Coinbase will benefit.
Use maximum leverage Coinbase, like many Silicon Valley companies, has trimmed spending to react to lower revenue in recent years. That gives the business operating leverage.
This leverage should persist if revenue growth continues in 2024. Coinbase stock has revenue growth, stable operational costs, and long-term upside from future blockchain technologies and use cases.
stay turned for development