Coinbase Dem Down to Sell as Retail Crypto Interest Dey Cool
Compass Point Capital don downgrade Coinbase, dem put sell rating and cut price target to $126. Dem talk say retail crypto interest dey cool, monthly transacting users drop plus average revenue per user dey low. Bitcoin and Ethereum trading volumes don reach multi-month low, e dey put pressure for Coinbase fee-based revenue.
The downgrade still show say dem miss subscription plus services revenue and Q3 forecast midpoint dey below analyst consensus. Competition from low-fee exchanges and DeFi platforms dey threaten core trading volumes. Regulatory uncertainty for market reforms fit delay growth initiatives till 2026.
Traders suppose expect high COIN volatility plus cautious sentiment. The downgrade mean say retail engagement need bounce back or revenue streams get to diversify before COIN fit regain momentum.
Bearish
Both Compass Point reports dey highlight Coinbase sell rating wey dem get because retail crypto interest dey waka, trading volumes dey fall, and revenue no too reach. For short term, these tins fit cause more wahala and pressure to push COIN shares down as investors adjust wetin dem dey expect. For long term, steady competition from low-fee exchanges plus delayed regulatory reforms fit block Coinbase from making growth and margin bigger again. Unless Coinbase fit diversify how e dey make money or see strong comeback for retail involvement, the stock fit still dey under more sell pressure.