JPMorgan Upgrades Coinbase, Sees $34B Potential in Base Token

Wall Street giant JPMorgan (JPM) upgraded Coinbase (COIN) to “overweight” from “neutral”, raising its price target to $404 from $342, citing new monetization avenues and reduced risks that make the crypto exchange more attractive than its peers.

Coinbase shares rose about 4% in early trading, reaching roughly $332.

JPMorgan highlighted two primary catalysts: the potential launch of a Base token and enhanced USDC yields.

Analysts noted that Coinbase is exploring a token for Base, its Layer 2 blockchain launched in August 2023, which has quickly become one of the ecosystem’s largest. A token could allow Coinbase to capture more of Base’s growth, with JPMorgan estimating a potential $12–$34 billion market cap and up to $12 billion in value accruing to Coinbase. The bank said the token could drive development, community engagement, and long-term infrastructure expansion.

Additionally, Coinbase is working to better monetize USDC through its Coinbase One subscription service. By offering segmented users 4% returns, the bank projects this could contribute about $1 per share in annual earnings.

While competition from decentralized exchanges (DEXs) remains a factor, JPMorgan noted that market share between DEXs and centralized exchanges has stabilized. Coinbase’s integrated model—spanning brokerage, market making, exchange, and custody—should support profitability even if fees decline.

JPMorgan valued Coinbase at 50 times projected 2027 earnings, factoring in $4 billion from a potential Base token, and set a December 2026 price target of $404.