Crypto asset manager Bitwise says top US exchange Coinbase will take over Charles Shwab as the world’s most valuable brokerage.
In a new reportBitwise says it envisions shares of Coinbase (COIN) reaching a price tag of $700 by 2025 – more than double its current price – which would see it surpass financial services firm Charles Schwab in terms of market capitalization.
“Heading into 2023, investors could buy Coinbase stock for $35. Today it is trading at $344, up almost 10x. We think it can be even higher. Much higher. Our prediction: Coinbase stock will trade above $700 per share by 2025 (more than doubling its current price).
That would make Coinbase the most valuable brokerage in the world, surpassing Charles Schwab. The reason? Coinbase is more than just a brokerage. There are three key catalysts that will help achieve this goal.”
According to Bitwise, the top three reasons why Coinbase shares will skyrocket next year are its booming stablecoin business, rooted in dollar-pegged crypto asset USDC, its Ethereum (ETH) layer-2 scaling solution Base, and its staking and custody services that it offers.
Bitwise data shows that Coinbase’s stablecoin business is up $162 million (+31%) this year, with the blockchain generating “tens of millions” of dollars in revenue every quarter.
Additionally, Coinbase’s staking and custody services have generated $589 million in revenue, a staggering 106% increase over the same period last year.
Bitwise also makes predictions for the two largest crypto assets by market cap, noting that Bitcoin (BTC) could reach $200,000 next year, while ETH could reach $7,000.
COIN is trading at $317 at the time of writing, a gain of 4.8% over the past 24 hours.
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