Institutional Uptake of Crypto Could Boost Coinbase, Says Benchmark

Benchmark Initiates Coinbase Coverage With Bullish Outlook and $252 Target

Benchmark has kicked off coverage on Coinbase (COIN) with a buy rating and a price target of $252, pointing to the company’s dominant market position and growing potential in a maturing crypto landscape.

In a report released Wednesday, analyst Mark Palmer credited Coinbase with building the most scalable crypto trading platform in the industry, commanding an estimated 66% of the U.S. market. The stock responded positively, climbing over 4% in early trading to around $198.

Palmer praised Coinbase’s broad range of offerings, describing it as a “comprehensive suite of products and services” designed to meet the needs of both retail and institutional investors.

Despite the company’s strong fundamentals, Coinbase’s stock has slumped nearly 50% since early December. Benchmark argues that the current valuation doesn’t reflect the improving backdrop for digital assets.

A major driver of future upside, the report noted, could be looming regulatory clarity, especially surrounding stablecoins. Coinbase is deeply involved in this segment through its partnership with USD Coin (USDC), a leading stablecoin it helps manage.

Progress on U.S. regulation appears to be gaining traction. Earlier this month, a House committee advanced a bill in coordination with the Senate, marking a critical step toward establishing a regulatory framework for stablecoins.

“With key digital asset legislation advancing, a new wave of institutional crypto adoption could soon unfold,” Palmer wrote.

Benchmark also highlighted Coinbase’s expanding revenue mix, particularly the non-trading, subscription, and services segments, which are growing faster than its core trading business—further strengthening its long-term value proposition.