Benchmark Predicts Gains for Coinbase Amid Institutional Crypto Surge

Benchmark Starts Coinbase With Buy Rating, Citing Market Dominance and Regulatory Tailwinds

Brokerage firm Benchmark has initiated coverage on Coinbase (COIN) with a buy rating and a $252 price target, pointing to the crypto exchange’s commanding market presence and the potential impact of forthcoming U.S. regulation.

In a note published Wednesday, Benchmark analyst Mark Palmer emphasized Coinbase’s scale and reach, noting the company holds approximately 66% of the U.S. crypto trading market. Shares rose more than 4% on the news, trading near $198 in the morning session.

“Coinbase has built a best-in-class platform with a robust product ecosystem that supports both retail and institutional users,” Palmer wrote.

The analyst also called attention to the stock’s recent decline—nearly 50% since December—arguing that current valuations fail to reflect an improving regulatory and macroeconomic backdrop for digital assets.

A key part of Benchmark’s thesis is Coinbase’s involvement in stablecoins, particularly USD Coin (USDC). Palmer believes progress on digital asset legislation—especially a bipartisan stablecoin bill that recently advanced in Congress—could open the floodgates for institutional crypto adoption.

“As regulatory clarity emerges, institutional interest is likely to ramp up significantly,” he added.

Benchmark also highlighted the growing contribution of Coinbase’s non-trading revenue, including subscriptions and custodial services, as a promising signal of long-term growth beyond transaction fees.