After years of dormancy, the largest U.S. cryptocurrency exchange, Coinbase (Nasdaq: COIN), is experiencing a dramatic resurgence. Following a steep decline of over 90% during the 2022 crypto market crash, the company’s stock has now surged to its highest level since its 2021 IPO.
On Thursday, COIN shares surged intraday to $382, nearing the record high set on its debut trading day in April 2021. The stock closed up 5.5% for the day and marked a new 52-week high this week. Since hitting its lows in April this year, Coinbase’s share price has rebounded by 133%, pushing its market capitalization close to $90 billion.
Behind this powerful rebound lies a combination of favorable factors: explosive growth in the stablecoin market, increasingly clear U.S. regulatory stance, continued institutional adoption, and a broad recovery in the crypto market driven by major assets like Bitcoin. Coinbase is now seen as a long-term winner in the new crypto cycle.
Coinbase recently launched “Coinbase Payments,” signaling its expansion into the global payments arena. Built on its own Ethereum Layer 2 network, Base, the platform allows merchants to accept USDC stablecoin payments 24/7, lowering the entry barrier for blockchain adoption. It is already integrated with mainstream e-commerce platforms like Shopify.
More importantly, Coinbase maintains a close partnership with Circle, the issuer of USDC. Under a revenue-sharing agreement, Coinbase earns interest income from USDC reserve assets, which has become a key engine of its revenue growth.
In Q1 this year, Coinbase’s revenue rose 24.2% year-over-year to $2.03 billion, with subscription and services revenue climbing 36.3% to $698.1 million. Analysts attribute this growth largely to the stable and recurring income generated by stablecoins.
Market Sentiment Improves, Regulatory Outlook Brightens
Coinbase’s rally is also driven by broader macro trends. The strengthening prices of major digital assets like Bitcoin, combined with the U.S. Congress accelerating efforts to pass legislation on stablecoins and digital asset market structure, are creating a more predictable environment for crypto companies.
Wall Street investment banks have responded by raising their ratings and price targets for Coinbase. Benchmark raised its target to $421, citing Coinbase’s potential to benefit from upcoming U.S. regulatory frameworks. Bernstein offered a more aggressive price target of $510, describing Coinbase as evolving into a “universal crypto financial bank” that connects retail users, institutional clients, and on-chain infrastructure.
At the same time, Coinbase’s key partner Circle recently completed its IPO under the ticker CRCL. After being issued at $31 per share, the stock quickly soared past $200, reflecting investor enthusiasm for the stablecoin sector.
Coinbase further deepened its partnership with Circle last year by acquiring a stake in the company, strengthening their joint leadership in the USDC ecosystem.
Despite strong performance and improving market conditions, some analysts caution that Coinbase still faces multiple challenges, including uncertainties in the implementation of regulatory details, rising competition, and revenue pressure from market volatility.
Nevertheless, as the global digital asset ecosystem continues to institutionalize and stablecoins and on-chain financial applications increasingly penetrate the mainstream, Coinbase is redefining its role in the Web3 era—not just as a trading platform, but as a bridge connecting traditional finance with the on-chain economy.
In the coming years, Coinbase may emerge as a key barometer for measuring the maturity and commercialization of the crypto industry.