Coinbase has crossed an important milestone and achieved market capitalization of more than $ 100 billion in the midst of renewed momentum in the crypto sector.
According to Google Finance factsShares of Coinbase (Coin) reached a new highest point of $ 398.50 during trading hours on July 14. The value of the share, however, ended the day at around $ 394, which reflects an increase of 2% during the period.
Given this version, Kylie Reidhead, co-owner of the Crypto Media Outlet Milk Road, suggested That coinbase could grow into a trillion dollar company.
He compared the Coinbase process with the rise of Amazon in the retail trade and Netflix in Entertainment, and added that the Crypto exchange-based crypto exchange positions itself as a pillar of “upgrading” the current financial system.
Reidhead noted that this positioning could help the company led by Brian Armstrong to catch up on traditional bank giants such as JPMorgan as a crypto infrastructure is more integrated with mainstream financing.
Why Coinbase -shares gather
The Coinbase Surge is partly due to improving the macro conditions for the crypto industry, rising digital asset prices and the growing role of the company in merging traditional finances with the emerging industry.
The admission to the S&P 500 index earlier this year meant the growing confidence in the foundations and profitability of the exchange. The relocation is also expected to increase institutional ownership, because index funds adjust their portfolios.
The currency sharing rally also coincided with rising crypto prices, in particular Bitcoin, which rose to a record high of more than $ 120,000 on the same day.
Is Coinbase overvalued?
Despite the positive prospects, some analysts believe that the valuation of Coinbase can be blown up.
Have analysts in 10x research warned That coinbase can be overvalued, especially because institutional investors prefer Bitcoin miners with a large cap as proxies for the top crypto-active.
According to the company, Coinbase still acts against a premium compared to Bitcoin, despite both assets that have a profit.
The company stated:
“Coinbase remains overvalued in relation to Bitcoin, although both have been won. Only a few assets, including Circle and Robinhood, show a stronger momentum than Bitcoin.”
In particular, HC Wainwright Coinbase recently reduced from Buy to Sell, with reference to its 150% rally in the past quarter and a price -win ratio that may not reflect the underlying Fundamentals.