He likened Coinbase’s trajectory to the rise of Amazon in retail and Netflix in entertainment, adding that the US-based crypto exchange is positioning itself as a pillar of “upgrading” the current financial system.
The Coinbase surge is, in part, due to improving macro conditions for the crypto industry, rising digital asset prices, and the company’s expanding role in merging traditional finance with the emerging industry.
Despite the positive outlook, some analysts believe Coinbase’s valuation may be inflated.
According to the firm, Coinbase is still trading at a premium relative to Bitcoin, despite both assets experiencing gains.
The firm stated:
“Coinbase remains overvalued relative to Bitcoin, though both have gained. Only a few assets, including Circle and Robinhood, show stronger momentum than Bitcoin.”
Notably, HC Wainwright recently downgraded Coinbase from Buy to Sell, citing its 150% rally over the past quarter and a price-to-earnings ratio that may not reflect underlying fundamentals.
