Bitwise, a prominent crypto asset management firm, has projected that Coinbase, a leading cryptocurrency exchange based in the United States, will become more valuable than Charles Schwab by 2025. This forecast underscores the expanding role of Coinbase in the financial landscape, particularly in cryptocurrency trading and investment domains.
How Will Coinbase Surpass Schwab?
Bitwise experts point to Charles Schwab’s management of $7 trillion in assets as a benchmark for how Coinbase can excel in brokerage services. Coinbase stands as a parent company for U.S.-based ETFs, and its Coinbase Prime service is employed by the U.S. Department of Justice for custodial tasks. The forecast appears credible given the influx of billions into ETFs and an expected surge in share prices.
What Factors Drive Coinbase’s Growth?
According to Bitwise, Coinbase’s growth can be attributed to three main factors: operations involving the USDC stablecoin, the Ethereum-based scaling solution known as Base, and enhanced staking and custody services. Notably, Coinbase’s stablecoin activities have seen a boost of $162 million, representing a 31% increase since the beginning of the year.
Key insights include:
- Coinbase shares have dramatically increased from $35 to $344 in 2023.
- Forecasts suggest Coinbase shares could exceed $700 by 2025.
- Coinbase’s revenue is bolstered by stablecoin operations and innovative staking services.
The anticipated growth of Coinbase is further supported by positive trends in the cryptocurrency sector. The rise of USDC and advancements within the Ethereum network are likely to enhance Coinbase’s market presence. Additionally, the expansion of staking and custody services is boosting the company’s financial stability, making it an attractive option for potential growth-oriented investors.
