The shares of crypto exchange Coinbase (COIN) set a new record by closing at $375.25, the highest level since its public debut in April 2021.
All-Time High for Coinbase Stock
Coinbase shares increased by 6.04% during the day and have surged 40% in the last month, including a 24% rise in just the last five trading sessions. The previous closing high of $342.98 was set in November 2021. The company's market capitalization has soared to $94.04 billion amid a steady flow of investors.
Growth Factors and Circle's Success
A major factor behind the recent rally is the explosive debut of Circle (CRCL), the firm behind USDC, the second-largest stablecoin. Since launching on June 5 at $83.23 per share, Circle stock has skyrocketed over 156%, closing at $213.63 on Thursday. According to filings, Coinbase earned more than 60% of Circle’s USDC income last year due to a revenue-sharing agreement.
Analysts' Outlook and Predictions
Analysts are optimistic, with Bernstein raising its target price to $510 and calling Coinbase the 'Amazon of crypto financial services.' Coinbase’s recent inclusion in the S&P 500 index has also boosted investor confidence, creating additional prospects for growth amid rising crypto activity.
Growing investor confidence and the impact of successful partnerships, such as collaboration with Circle, underscore Coinbase's significance in the cryptocurrency space and shape positive expectations for the future.
