While Ethereum continues to feed an expanding ecosystem, Crypto Exchange Coinbase (COIN) A stands out as one of the main public companies lined up on the blockchain, Wall Street broker said on Monday in a research report.
The native token ether of the network (Eth) Rallied 80% since June 5, noted the report, catalyzed by the circle (CRCL) Listing and market awareness that most stablescoins are struck on the Ethereum network.
Coinbase operates one of the largest layer chains on Ethereum, a base, which deals with more than 9 million transactions daily, encompassing stablescoins, exchanges, financial applications and services intended for consumers, wrote analysts by Gautam Chhugani.
Although base does not have a native token, transaction gas costs are adjusted in ether, positioning Coinbase to win sequencer costs in ETH. This contributes to an execution rate of annualized income of $ 75 million, analysts wrote.
Beyond the transaction costs, the base has also become the dominant chain for deployments of token, said Bernstein. Coinbase’s decision to integrate all basic tokens in its main exchange platform has considerably increased the negotiation activity, which increases the brokerage fees worded by ETH more.
The launch of the basic application, a portfolio of consumers to buy, sell, hold and transfer Crypto (including stablecoin payments)More reinforces the exhibition of Coinbase in Ethereum and its ecosystem.
In addition to its operational activities, Coinbase has a significant ether treasure worth $ 590 million (136,782 ETH)Making the company a direct beneficiary of the appreciation of the token prices, said the broker.
As Coinbase underlined in its report on the profits of the second quarter, the negotiation costs of July jumped approximately 40% compared to the average of the T2, drawn by an increase in the negotiation activity of ether.
This wave reflects the broader excitation of the market surrounding the ether, and with more than 250 tokens listed on Coinbase, the exchange is ready to benefit from the wider growth of the Ethereum ecosystem, added the report.
Bernstein has an outperformance note on the Coinbase stock with a price target of $ 510. The shares were 4%higher, merchant about $ 323 at the time of publication.
Read more: The weak Q2 of Coinbase is a blip, not a breakdown: known as benchmark
