Future

COIN

Base

Stellar

In a recently published <a href="https://twitter.com/BitwiseInvest/status/1788234612109353004" target="_blank" rel="noopener nofollow">report</a> by Bitwise, the leading crypto index fund manager, a striking comparison has been drawn between Coinbase and Amazon, highlighting a significant yet under-reported aspect of Coinbase’s business — the Base Layer 2 network. Titled “It’s All About That Base (and Other Thoughts on Coinbase),” the report authored by Matt Hougan and Juan Leon delves deep into the financial and strategic shifts underpinning Coinbase’s latest successes and potential future. 
<h2 id="amazon-of-crypto-bitwise-projects-stellar-future-for-coinbase">Amazon Of Crypto? Bitwise Projects Stellar Future For Coinbase</h2> 
Coinbase’s latest financial results have been a revelation, demonstrating robust growth and operational efficiency. The company reported $1.6 billion in net revenue, marking a 116% increase year-over-year, significantly surpassing Wall Street’s expectation of $1.36 billion. 
Profits were equally impressive, reaching $1.2 billion with total cash reserves swelling to $7.1 billion. Each of Coinbase’s business lines showed notable growth: consumer trading revenue rose by 93%, institutional trading by 105%, stablecoin revenue by 15%, blockchain rewards by 59%, and custodial services by 64%. 
Despite these strong numbers, the stock has trended downwards, suggesting that the market may not fully appreciate the depth of the company’s strengths. However, Bitwise highlights a less conspicuous but potentially transformative element of Coinbase’s portfolio: the <a href="https://www.newsbtc.com/news/crypto-analyst-base-next-memecoin-hotspot-top-8/" target="_blank" rel="noopener ">Base Layer 2 network</a>. 
Launched in August atop Ethereum, Base aims to enhance the blockchain’s throughput while lowering costs. It operates similarly to a bar tab, aggregating transactions and settling them in batches, thereby reducing transaction costs to under $0.01 and speeding up processing times to less than one second. 
The adoption rate of Base has been staggering. The network saw a 74% increase in transactions quarter-over-quarter in the first quarter, with a 40% increase in April alone compared to the entire first quarter. The exponential growth in the number of developers using Base, which increased eightfold, underscores the network’s rising significance and the broader industry’s interest. 
From a financial perspective, Base has been lucrative for Coinbase. In the first quarter alone, the network generated $27.4 million in transaction fees, of which Coinbase retained $15.5 million. This high-margin revenue stream continued into April, adding another $11 million to Coinbase’s profits. Given these trends, Bitwise <a href="https://www.newsbtc.com/bitcoin-news/bitwise-cio-unveils-5-major-forecasts-for-bitcoin-2028-halving-anticipates-a-280-price-surge/" target="_blank" rel="noopener ">predicts</a> that Base could soon be contributing $10 million to $20 million in monthly profits to Coinbase. 
The analogy with Amazon is rooted in the transformation potential of Base. Just as Amazon evolved from a simple online bookstore into a retail giant and later a dominant force in cloud computing through Amazon Web Services (AWS), Coinbase could similarly evolve from a crypto brokerage to a fundamental infrastructure provider for the <a href="https://www.newsbtc.com/news/top-5-events-crypto-2023/" target="_blank" rel="noopener ">crypto industry</a>. 
This shift could redefine Coinbase’s role and impact within the market, positioning it as a central infrastructure entity in the crypto ecosystem, akin to how AWS underpins much of today’s web services. 
The report concludes by reflecting on the significance of Base for Coinbase’s strategic direction. “[T]he early returns on Base suggest that Coinbase could end up becoming something even greater: a core infrastructure provider to the crypto ecosystem. And that would be a very big deal indeed.” COIN Price Analysis 
Analyzing the technical landscape, the price of Coinbase (COIN) currently faces a pivotal moment. After dropping to $211.20 (as of press time), down 11.4% from a weekly high of $235.79, the stock is testing significant resistance and support levels that could dictate its short-term trajectory. 
The Fibonacci retracement tool, applied from a low of $31.62 to a high of $429.52, identifies critical price points. Presently, COIN is contending with the $230.57 level (0.5 Fibonacci level), which acts as the primary resistance. The 20-week Exponential Moving Average (EMA) provides crucial support at $199.35, with the stock recently bouncing off this level. 
The Relative Strength Index (RSI) stands at 56.10, suggesting a balanced dynamic between buying and selling pressures, with a slight tilt towards buying. The recent price behavior, characterized by a candlestick with a small body and longer wicks, reflects the ongoing uncertainty and cautious sentiment among traders. 
<img loading="lazy" decoding="async" class="wp-image-607166 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/05/COIN_2024-05-09_09-07-14.png?resize=3628%2C1673" alt="Coinbase COIN price" width="3628" height="1673" srcset="https://www.newsbtc.com/wp-content/uploads/2024/05/COIN_2024-05-09_09-07-14.png?resize=3628%2C1673?w=3628 3628w, https://www.newsbtc.com/wp-content/uploads/2024/05/COIN_2024-05-09_09-07-14.png?resize=3628%2C1673?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/05/COIN_2024-05-09_09-07-14.png?resize=3628%2C1673?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/05/COIN_2024-05-09_09-07-14.png?resize=3628%2C1673?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/05/COIN_2024-05-09_09-07-14.png?resize=3628%2C1673?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/05/COIN_2024-05-09_09-07-14.png?resize=3628%2C1673?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/05/COIN_2024-05-09_09-07-14.png?resize=3628%2C1673?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/05/COIN_2024-05-09_09-07-14.png?resize=3628%2C1673?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/05/COIN_2024-05-09_09-07-14.png?resize=3628%2C1673?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1">

Bitwise Heralds Coinbase (COIN) As The ‘Next Amazon’: Price Targets

Table of Contents

NewsBTC

Other articles published on May 9, 2024

Vitalik Introduces Multi-Dimensional Execution Gas; Some Complexity Involved

Unveiling Q4 Results: Top 5 Companies Propel Nifty’s Earnings Growth, Impact on Cryptocurrency Ma...

Breaking Boundaries: Tars Protocol's Weekly Triumphs in DeFi

Tether (USDT) Eyes European Market Growth with Strategic CitiPay Investment

Bitcoin’s Potential Rise Analyzed by Glassnode

Dogecoin’s road ahead: Can DOGE’s price hit $0.25 in May?

Join our free newsletter for daily crypto updates!