The Coinbase stock story is heating up in 2025 as the leading cryptocurrency exchange platform captures investor attention. Coinbase Global Inc. (NASDAQ:COIN) allows retail and institutional investors to buy, sell, store, and trade digital assets such as Bitcoin (BTCUSD), Ethereum (ETHUSD), and Solana (SOLUSD). Serving more than 100 million verified users across 100 countries, Coinbase provides retail apps, institutional trading platforms, and blockchain infrastructure tools, making it one of the most trusted names in the crypto space.
Strong Market Performance
Despite volatility in the crypto sector, Coinbase stock has delivered notable gains this year. Over the past five days, the stock rose 7%, while its one-month return stands at 16%. Over six months, COIN surged 77%, and year-to-date, it gained 46%, far outpacing the S&P 500’s ($SPX) 16% YTD growth. Coinbase has consistently outperformed broader market indices, boosted by growing investor confidence and inclusion in the S&P 500, signaling long-term potential for the stock.
Q2 Results Highlight Mixed Performance
Coinbase posted Q2 2025 revenue of $1.5 billion, slightly below analyst expectations of $1.56–$1.59 billion. Adjusted EPS came in at $0.12, falling short of forecasts between $1.28 and $1.51.** While trading revenue and spot volumes declined over 30% year-over-year, Coinbase’s net profit included a $1.5 billion unrealized gain from strategic investments and $362 million from its crypto portfolio, partially offsetting core earnings pressure.
Assets under custody reached a record $245 billion, reflecting the growing adoption of ETFs and institutional interest. Cash and cash equivalents totaled $7.5 billion, down 12% from last year, while shareholders’ equity rose nearly 18%. Coinbase projected Q3 subscription and service revenue between $665 million and $745 million, emphasizing continued focus on recurring revenue streams amid ongoing market volatility. The company is scheduled to release Q3 results on October 30.
Analyst Upgrade Spurs Optimism
J.P. Morgan recently upgraded COIN stock from “Neutral” to “Overweight,” sparking a 4% rally. The upgrade is centered on the potential of a native Base token for Coinbase’s Layer 2 blockchain platform. Analysts estimate the Base token market could reach $12 billion to $34 billion, with Coinbase potentially capturing $4 to $12 billion in value. The token is expected to accelerate developer engagement, drive innovation, and solidify Coinbase’s position as a top Layer 2 network.
In addition, J.P. Morgan highlighted Coinbase’s ability to monetize USD Coin (USDC) yields by offering higher yields to premium Coinbase One subscribers. This strategy could add $374 million annually, strengthening recurring revenue and expanding the platform’s premium user base.
Should Investors Buy COIN Stock?
With J.P. Morgan’s upgrade and growing enthusiasm around Base and USDC monetization, Coinbase stock is viewed as a “Moderate Buy” by market analysts. The mean price target stands at $385.63, offering roughly 7% upside from current levels.
Of the 33 analysts covering the stock, 16 rate it a “Strong Buy,” 13 “Hold,” one “Moderate Buy,” and three “Strong Sell,” underscoring broad support for Coinbase’s long-term growth potential.
While trading volumes remain sensitive to crypto market swings, Coinbase’s strategic focus on subscription services, blockchain innovation, and token economics positions the company for sustained revenue growth and shareholder value.
Furthermore, Coinbase continues to explore new revenue streams, such as decentralized finance (DeFi) integrations and tokenized equity offerings, which could unlock additional profits in the coming years.
In addition to revenue expansion, Coinbase is strengthening global partnerships and infrastructure, including enhanced trading tools, staking services, and enterprise blockchain solutions. These initiatives aim to capture a broader share of the fast-growing cryptocurrency market while mitigating risks associated with market volatility. Combined with favorable regulatory developments and increasing institutional adoption, these factors suggest that Coinbase stock could remain a strong contender for investors seeking exposure to the evolving digital asset ecosystem.
Featured Image: Unsplash
Author Stephanie Bédard-Châteauneuf 
