Crypto exchange Coinbase’s hot streak continued into Tuesday morning’s trade, with the firm’s shares trading up around 2% at the time of writing.
The move adds to a multi-session rally for Coinbase, which is up more than 30% since it hit low points in late September. At last check it was trading at $299 a share. The firm’s rally has been underpinned by an announcement earlier this month that it would launch its own NFT marketplace — a business that could bring in more fees than its market for exchanging cryptocurrencies. As The Block Research pointed out, NFT marketplaces charge sellers 2.2% on NFTs sold through their platforms. Coinbase charges users 0.5% to sell crypto-assets.
Across Wall Street bankers praised the move, pushing them to emphasize bullish stances on Coinbase’s stock. JMP, for instance, increased its price target to $330 from $300.
“In our view, Tuesday’s announcement also highlights Coinbase’s ability to leverage its unique scale, resources, and experience to move into emerging areas of the crypto economy as the company innovates and evolves its business model,” the bank said.
Coinbase has attracted more than 1 million users to sign up for the NFT marketplace waitlist.
Mark Palmer of BTIG reemphasized his buy rating for the stock, noting “COIN is particularly well positioned to attract new retail users to NFTs and to feature use cases for the tokens that extend well beyond art.”