Monitors display Coinbase signage during the company’s initial public offering (IPO) on the Nasdaq MarketSite in New York, United States on Wednesday, April 14, 2021.
Michael Nagle | Bloomberg | Getty Images
The price of Coinbase may fluctuate alongside the value of bitcoin in the short term, but Canaccord is betting on the future of blockchain technology and initiating coverage of the crypto exchange as a buy.
Shares of America’s largest cryptocurrency exchange, which last traded at around $ 233, made their public debut in mid-April and fell sharply along with the price of bitcoin in late May. Bitcoin is currently trading around $ 39,000 after a month of roller coaster trading after its price dropped almost a month ago.
Coinbase’s revenue is heavily dependent on trading fees, of which 81% comes from retail and 5% from institutional trading, according to Canaccord. It has the highest trading fees among crypto exchanges, the bank found.
Nonetheless, Canaccord said it is confident that Coinbase’s business will eventually expand beyond retail and into emerging blockchain opportunities – which could include support for new protocols beyond bitcoin. and Ethereum, decentralized finance and cloud solutions – and that the crypto exchange will be a “super ramp” in this new world.