Coinbase Receives JPMorgan Upgrade; Base Token Could Unlock $34B Potential

JPMorgan Upgrades Coinbase, Highlights $34B Opportunity in Base Token

JPMorgan (JPM) upgraded Coinbase (COIN) to “overweight” from “neutral”, raising its price target from $342 to $404, citing new monetization opportunities and declining risks that enhance the exchange’s appeal relative to peers.

In early trading, Coinbase shares climbed roughly 4% to $332.

The bank pointed to two key growth drivers: the potential launch of a Base token and enhanced USDC yields.

Coinbase is exploring a token for Base, its Layer 2 blockchain launched in August 2023, now one of the largest in the ecosystem. JPMorgan estimates the Base token could reach a $12–$34 billion market cap, with up to $12 billion in value accruing to Coinbase. The token could also boost ecosystem development, community participation, and long-term infrastructure growth.

Additionally, Coinbase is working to monetize USDC via its Coinbase One subscription service. By offering select users 4% returns, the bank projects an incremental $1 per share in annual earnings.

While decentralized exchanges (DEXs) continue to pose competition, JPMorgan noted that market share between DEXs and centralized exchanges has stabilized. Coinbase’s integrated model—covering brokerage, market making, exchange, and custody—positions the platform to sustain profitability even if fees decline.

The bank valued Coinbase at 50 times projected 2027 earnings, including $4 billion from the potential Base token, and set a December 2026 price target of $404.