Wall Street broker Bernstein highlights Coinbase's strong position in the Ethereum ecosystem, noting the company's exposure to growth through Base, transaction fees, and a sizable ETH treasury.
Coinbase (COIN) is well-positioned to benefit from the surge in Ethereum 's (ETH) price, according to a recent research report from Wall Street broker Bernstein. The report highlights that ETH has rallied 80% since June 5th, driven by factors such as Circle's adoption of Ethereum 's blockchain network for its stablecoin minting operations and the growing activity on Coinbase 's Layer 2 chain, Base.
Base, which processes over 9 million transactions daily across diverse applications like trading, finance, and consumer services, contributes significantly to Coinbase's revenue. Even though Base lacks its own native token, transaction fees are settled in ETH, allowing Coinbase to earn sequencer fees currently estimated at an annualized rate of $75 million. Beyond transaction fees, Base has become a dominant platform for token deployments, further boosting ETH-denominated brokerage fees for Coinbase. Furthermore, Coinbase's integration of all Base tokens onto its primary exchange platform has spurred increased trading activity, further enhancing the company's exposure to Ethereum and its expanding ecosystem. Bernstein analysts also noted Coinbase's sizable ether treasury valued at $590 million (136,782 ETH), which allows the company to directly benefit from the upward price trajectory of ETH. Coinbase's robust operational activities combined with its significant ether holdings position it as a key beneficiary of Ethereum's continued growth
Cryptocurrency Ethereum Coinbase Base Stablecoin
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