Quick Take
- Coinbase Set to Soar as Ethereum surges past $4,000 and altcoins rally.
- Its wide token selection, staking services, and Base chain growth drive upside.
- Analysts expect Q3 and Q4 to be strong for trading volume and revenue.
Coinbase Set to Soar as Ethereum Leads the Rally
The crypto market is buzzing again, and Coinbase Set to Soar is the phrase on many investors’ minds.
Ethereum (ETH) has made a massive comeback—up over 80% since June 5—driven by Circle’s IPO announcement and renewed interest in blockchain infrastructure.
Most stablecoins, including USDC, are built on Ethereum. So naturally, as interest in Ethereum rises, platforms aligned with it—like Coinbase—are in a great position to benefit.
And with over 250 crypto tokens available on the platform, Coinbase is already a top choice for traders.
Coinbase Set to Soar as Altcoins Break Out
Just recently, Ethereum crossed $4,000 for the first time in eight months, reaching as high as $4,350 before cooling off slightly.
While still below its all-time high of $4,878, ETH is clearly on an upward path. This kind of growth usually kicks off what crypto investors call “alt season”—a time when alternative cryptocurrencies outperform Bitcoin.
And this is where Coinbase Set to Soar really comes into play. Thanks to its wide support for altcoins and the integration of tokens from Base, its own Layer 2 blockchain, Coinbase is well positioned to capture the coming surge in trading activity.
Base Chain Adds Serious Firepower to Coinbase
Coinbase’s Base chain is making a substantial amount of money behind the scenes. Every day, it processes more than 9 million transactions, with ETH being used to pay gas fees.
This translates into roughly $75 million per year in sequencer fees for Coinbase.
In addition, the platform brings in brokerage fees from Base chain token trades and has launched the Base App, making it easier than ever for users to transact with crypto.
Coinbase’s staking services—mainly for ETH—account for 10% of the company’s total revenue. So as ETH prices rise, those staking rewards become more lucrative.
On top of that, Coinbase holds over 136,000 ETH, valued at roughly $570 million, which adds direct exposure to Ethereum’s price movement.
Strong Quarters Ahead for Coinbase and Crypto
Although Coinbase stock dipped after its Q2 earnings (down 15%), analysts at Bernstein say not to worry. According to them, Q2 didn’t reflect the full strength of the crypto recovery—which only really picked up in July.
Since then, Coinbase has seen a 40% increase in trade volume over the average for Q2. With ETH and altcoins gaining traction, Q3 and Q4 are expected to be strong quarters for revenue and user activity.
As a result, analysts anticipate earnings estimates to rise significantly as Coinbase rides the wave of higher trading demand.
Other Crypto Winners Riding Ethereum’s Wave
Coinbase might be leading the pack, but other companies tied to Ethereum are also in a good spot:
- Robinhood is expanding its crypto offering to 30+ tokens, introducing ETH staking, and launching its own Layer 2, Robinhood Chain.
- Circle, the issuer of USDC, has seen its token supply rise 7% over three months, with more than 60% of it based on Ethereum.
- Ethereum ETFs, like BlackRock’s iShares Ethereum Trust, could soon offer 2.9% staking yield, blending crypto rewards with traditional investment tools.
To stay updated on ETH prices, check out The Block and for ETF developments, visit CoinDesk.
Ethereum Treasury Firms: The New Investment Trend
The emergence of Ethereum treasury firms is a more recent industry opportunity. These firms actively buy ETH and use on-chain strategies like staking and DeFi to earn income.
Unlike ETFs, these companies adjust their approach based on market trends. However, they come with more risk—so picking the right team is crucial. Analysts compare them to MicroStrategy’s approach with Bitcoin, but tailored to Ethereum.