JPMorgan: Coinbase could release a value of $34 billion if it launches the Base token

ChainCatcher news, according to The Block, JPMorgan analysts state that the eventual launch of the Base network token by Coinbase could unlock up to $34 billion in value. The bank also emphasized that changes to Coinbase's USDC reward mechanism and the new DEX features integrated with Base are key profit and risk management levers.

The JPMorgan equity research team raised Coinbase's rating in a report released on Friday and increased its target stock price for December 2026 to $404, citing that as the company further aligns with the Layer 2 ecosystem and stablecoin economy, its "profit opportunities are emerging, and risks are decreasing." JPMorgan noted that the Base token could "level the playing field" for the success of Coinbase's Ethereum-based Layer 2 network.

Based on current network activity and "high token economic benefits," the bank predicts that Coinbase's market capitalization could reach between $12 billion and $34 billion over time, with Coinbase potentially retaining 40% of the supply, equivalent to about $4 billion to $12 billion in equity value. JPMorgan also pointed out that Coinbase's USDC yield program is a potential margin lever.

The company currently returns most of the interest it earns from its USDC reserves from Circle (approximately $400 million annually) as rewards to customers. However, analysts indicated that Coinbase is evaluating a change that would limit the payout amount to Coinbase One subscription users. If regular users stop earning yields, Coinbase could retain about $374 million annually and allocate it to customers.

Finally, analysts noted that Coinbase has integrated a DEX aggregator into the Base application to hedge against the growth of decentralized exchanges, which currently account for about 25% of total cryptocurrency spot trading volume.