JPMorgan: Base Token Could Hit $34B, Buoy Coinbase
JPMorgan analysts forecast that Coinbase’s upcoming Base token could achieve a market capitalization between $12 billion and $34 billion, based on Base’s strong on-chain metrics—including over $5 billion in TVL and more than 9 million daily transactions since its August 2023 launch. If Coinbase retains roughly 40% of the token supply, this could translate into a $4 billion–$12 billion equity boost, contributing to the 9% jump in COIN shares on October 24. The report also outlines two additional revenue strategies: narrowing USDC reserve interest to Coinbase One subscribers to secure an estimated $374 million in annual profit, and integrating a DEX aggregator into the Base App to capture 25% of spot trading volume. CEO Brian Armstrong confirms evaluation of Base token options, while founder Jesse Pollak foresees enhanced decentralization and developer engagement. This analysis underscores the Base token’s potential to diversify Coinbase’s income beyond trading fees and solidify its Layer 2 position.
Bullish
Short-term, the prospect of a high-value Base token and immediate equity boost—evidenced by the 9% surge in COIN shares—could drive increased buying interest in COIN and related assets. Long-term, the token’s roles in governance, staking, and fee payments, combined with USDC interest strategies and DEX aggregator integration, signal diversified revenue streams and infrastructure stability. This multi-pronged approach supports sustained growth and value capture from Base’s scaling activity, underlining a bullish outlook.