Coinbase Rated Higher by JPMorgan, Base Token Valued at $34B Opportunity

JPMorgan Upgrades Coinbase, Eyes $34B Opportunity with Base Token

JPMorgan (JPM) upgraded Coinbase (COIN) to “overweight” from “neutral”, raising its price target from $342 to $404, citing new monetization avenues and reduced risk that make the exchange more attractive compared with peers.

Coinbase shares rose roughly 4% to $332 in early trading.

The bank highlighted two main catalysts: a potential Base token and enhanced USDC yield offerings.

Coinbase is exploring a token for Base, its Layer 2 blockchain launched in August 2023, now one of the largest in the ecosystem. JPMorgan estimates the Base token could reach a $12–$34 billion market cap, with up to $12 billion in value accruing to Coinbase. Analysts said the token could drive ecosystem growth, community engagement, and long-term infrastructure development.

Additionally, Coinbase is working to monetize USDC through its Coinbase One subscription service. Offering 4% returns to select users could contribute about $1 per share in annual earnings, according to JPMorgan.

While competition from decentralized exchanges (DEXs) remains, JPMorgan noted that market share between DEXs and centralized exchanges has stabilized. Coinbase’s integrated model—spanning brokerage, market making, exchange, and custody—positions the platform to maintain profitability even if fees decline.

The bank values Coinbase at 50 times projected 2027 earnings, factoring in $4 billion from the potential Base token, and set a December 2026 price target of $404.