The Investorean Stock of the Week

The Nasdaq exchange of the future?

Tzanis Koronaios

Jan 21, 2025

Hey Investoreans!

Get ready for Stock Pick Tuesdays! Every week, we’ll be hand-picking one stock with a quick analysis, so you can toss it on your watchlist and start your research. 🚀💼

Remember, this isn’t financial advice—do your homework before making any moves. Let's make those stocks work for you! 💰📈

Feeling a bit timid but eager to dive into the crypto pool?

Coinbase

Coinbase has solidified itself as the leading U.S.-based cryptocurrency exchange, benefiting significantly from the regulatory scrutiny that has disrupted competitors like Binance and the collapse of FTX. Its proactive approach to working within regulatory frameworks has earned it a reputation as a trusted and compliant platform. As the crypto market evolves under a more crypto-friendly administration, Coinbase is well-positioned to benefit from increased institutional trust and participation. Its strong compliance record could pave the way for major partnerships, including custody services and infrastructure solutions for ETFs, cementing its dominance in a more regulated environment.

Expansion into New Markets and Products

Coinbase is not just a cryptocurrency exchange—it is evolving into a broader ecosystem. The company is aggressively expanding its offerings into high-growth areas such as derivatives trading, institutional custody services, and its layer-2 blockchain solution, Base. These strategic initiatives aim to diversify Coinbase's revenue streams, reducing its reliance on trading fees, which are often volatile. Additionally, its investments in tokenization and blockchain scalability position Coinbase as a leader in shaping the future of the crypto industry. This expansion is expected to unlock new market opportunities and drive sustainable growth in the coming years.

User Growth and Engagement

With a bullish crypto market expected in 2025, particularly following the Bitcoin halving event, Coinbase is poised to attract a significant influx of new users. The platform has consistently demonstrated strong retail engagement, and rising transaction volumes during bullish periods will directly benefit its revenue. Moreover, its user-friendly platform, robust educational resources, and global expansion efforts are likely to draw in millions of new users. Analysts anticipate significant user growth, and with Coinbase offering more products and services to cater to a broader audience, the platform is positioned to capitalize on both new and existing customers.

Commitment to Technological Innovation

Coinbase has been heavily investing in cutting-edge technologies, showcasing its commitment to staying ahead of the curve in the fast-paced crypto industry. Its innovations include the launch of Base, a layer-2 blockchain aimed at lowering transaction costs and enhancing scalability. The company is also developing AI-driven tools and blockchain infrastructure to improve the user experience and attract developers to its ecosystem. These advancements are expected to strengthen Coinbase's network effects and utility, driving higher user retention and increasing developer activity on its platform. Such technological leadership is a key competitive edge that positions Coinbase for long-term success.

Financial Performance and Analyst Optimism

Analysts have been optimistic about Coinbase's financial prospects, with price targets for the stock ranging from $400 by the end of 2025 under favorable market conditions. Expectations of continued revenue growth are fueled by rising institutional adoption, increased crypto transaction volumes, and diversified revenue streams like subscriptions and custody services. Moreover, Coinbase has focused on improving operational efficiency, which could lead to stronger profitability in the coming years. With the global crypto market cap projected to grow to $6.8 trillion, Coinbase's established infrastructure and regulatory compliance are expected to play a pivotal role in capturing market share and driving shareholder value.

History (Crypto Market Cap)

2013: The total crypto market value was about $10.6 billion.

2014: It decreased to $5.5 billion.

2015: Slightly up to $7.0 billion.

2016: It reached $17.5 billion.

2017: A significant jump to $590 billion due to the Bitcoin bull run.

2018: Dropped back to $128 billion after the crypto winter.

2019: Recovered to $190 billion.

2020: Increased to $768 billion, marking a 304% rise from the previous year.

2021: Peaked at $2.26 trillion, an increase of 194% from 2020.

2022: Fell to $797 billion, a 65% decrease from 2021.

2023: Recovered to $1.66 trillion, up by 108%.

2024 $3 trillion, a 96% increase from the start of the year.

2025 3.4 trillion.

To conclude

Forecasts predict significant revenue increases, with estimates as high as $50 billion under bullish conditions.

Analysts have set optimistic targets, projecting $400 per share depending on market trends.

Okay, so these numbers and figures? They’re like horoscopes for tech nerds - fun to read but take 'em with a grain of salt! But hey, if this crypto world keeps ballooning like it has been, snagging shares in the big boss of exchanges makes total sense, right? Plus, with the CEO chumming it up with President Trump, Coinbase could be like the cool kid leading the crypto dance. And don't forget, with Bitcoin ETFs, maybe even Solana ETFs, all those big shots and their mega funds are gonna need a place to play - and guess who's the playground? Coinbase! So, yeah, the stars seem to be aligning for a pretty sweet deal.

To get more market insights like this, visit investorean.com!

May Investorean Be With You

Until next time
TKR