We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Does Crypto Asset Price Volatility Hold the Key to Coinbase's Future?
Read MoreHide Full Article
Key Takeaways
Coinbase's revenue model relies on crypto asset prices driving trading volumes.
Price drops in Bitcoin and Ethereum can hit COIN's earnings and cash flows.
Crypto cycles also impact COIN's peers, Robinhood and Interactive Brokers', growth.
Coinbase Global, Inc. (COIN - Free Report) is a crypto leader whose growth is tied to crypto asset prices like those of Bitcoin and Ethereum. Crypto price influences trading volumes, the core of Coinbase’s foundation. When asset prices rise, investor interest and retail adoption increase, amplifying transaction revenues. On the flip side, when prices decline, revenue growth stalls. Thus, Coinbase’s business model remains inherently cyclical and crypto asset prices act as a central growth lever.
COIN’s largest revenue stream—transaction fees—depends directly on trading volumes. High asset prices increase market capitalization and speculative activity, which amplifies liquidity and transaction volumes. As a result, Coinbase’s revenue growth is not just linked to client base expansion but also to traders’ activities.
Crypto asset price risk could affect operating results. A drop in the market price of Bitcoin, Ethereum, and other crypto assets has an adverse effect on earnings, the carrying value of crypto assets and future cash flows. It also affects liquidity and the ability to meet ongoing obligations. The price of crypto assets and associated demand for buying, selling and trading crypto assets have historically been subject to significant volatility. In 2017, the value of certain crypto assets, including Bitcoin, witnessed a steep increase, followed by customer base expansion worldwide. It was followed by a steep decline in 2018 and again in 2022, which adversely impacted the net revenues and operating results of Coinbase.
Crypto price trends influence Coinbase’s strategic positioning and investor sentiment. In bullish cycles, Coinbase, being a crypto leader, benefits from increased crypto adoption and further reinforces its market dominance.
What About COIN’s Peers?
Crypto asset prices play a critical role in shaping the growth of COIN’s peers like Robinhood Markets (HOOD - Free Report) and Interactive Brokers Group. (IBKR - Free Report) .
For Robinhood, rising crypto valuations fuel retail trading, increase transaction revenues and attract new users, while downturns reduce volumes and customer activity. Robinhood’s business performance mirrors crypto market cycles, exposing it to volatility.
On the other hand, Interactive Brokers benefits when higher crypto prices attract institutional and professional clients, driving trading commissions and asset-based fees. During soft markets, Interactive Brokers faces muted demand for digital assets.
Crypto prices thus act as key growth catalysts for both Robinhood and Interactive Brokers.
COIN’s Price Performance
Shares of COIN have gained 24.2% year to date, outperforming the industry.
Image Source: Zacks Investment Research
COIN’s Expensive Valuation
COIN trades at a price-to-earnings value ratio of 50, above the industry average of 24.94. But it carries a Value Score of F.
Image Source: Zacks Investment Research
Estimate Movement for COIN
The Zacks Consensus Estimate for COIN’s third-quarter 2025 EPS has moved 11.2% north, while that for fourth-quarter 2025 EPS has moved 4.3% south over the past 30 days. The same for full-year 2025 has increased 93.6% while that for 2026 has decreased 7%.
Image Source: Zacks Investment Research
The consensus estimates for COIN’s 2025 and 2026 revenues indicate year-over-year increases. The consensus estimates for COIN’s 2025 and 2026 EPS indicate a decline.
COIN stock currently carries a Zacks Rank #3 (Hold).
Image: Shutterstock
Does Crypto Asset Price Volatility Hold the Key to Coinbase's Future?
Key Takeaways
Coinbase Global, Inc. (COIN - Free Report) is a crypto leader whose growth is tied to crypto asset prices like those of Bitcoin and Ethereum. Crypto price influences trading volumes, the core of Coinbase’s foundation. When asset prices rise, investor interest and retail adoption increase, amplifying transaction revenues. On the flip side, when prices decline, revenue growth stalls. Thus, Coinbase’s business model remains inherently cyclical and crypto asset prices act as a central growth lever.
COIN’s largest revenue stream—transaction fees—depends directly on trading volumes. High asset prices increase market capitalization and speculative activity, which amplifies liquidity and transaction volumes. As a result, Coinbase’s revenue growth is not just linked to client base expansion but also to traders’ activities.
Crypto asset price risk could affect operating results. A drop in the market price of Bitcoin, Ethereum, and other crypto assets has an adverse effect on earnings, the carrying value of crypto assets and future cash flows. It also affects liquidity and the ability to meet ongoing obligations.
The price of crypto assets and associated demand for buying, selling and trading crypto assets have historically been subject to significant volatility. In 2017, the value of certain crypto assets, including Bitcoin, witnessed a steep increase, followed by customer base expansion worldwide. It was followed by a steep decline in 2018 and again in 2022, which adversely impacted the net revenues and operating results of Coinbase.
Crypto price trends influence Coinbase’s strategic positioning and investor sentiment. In bullish cycles, Coinbase, being a crypto leader, benefits from increased crypto adoption and further reinforces its market dominance.
What About COIN’s Peers?
Crypto asset prices play a critical role in shaping the growth of COIN’s peers like Robinhood Markets (HOOD - Free Report) and Interactive Brokers Group. (IBKR - Free Report) .
For Robinhood, rising crypto valuations fuel retail trading, increase transaction revenues and attract new users, while downturns reduce volumes and customer activity. Robinhood’s business performance mirrors crypto market cycles, exposing it to volatility.
On the other hand, Interactive Brokers benefits when higher crypto prices attract institutional and professional clients, driving trading commissions and asset-based fees. During soft markets, Interactive Brokers faces muted demand for digital assets.
Crypto prices thus act as key growth catalysts for both Robinhood and Interactive Brokers.
COIN’s Price Performance
Shares of COIN have gained 24.2% year to date, outperforming the industry.
Image Source: Zacks Investment Research
COIN’s Expensive Valuation
COIN trades at a price-to-earnings value ratio of 50, above the industry average of 24.94. But it carries a Value Score of F.
Image Source: Zacks Investment Research
Estimate Movement for COIN
The Zacks Consensus Estimate for COIN’s third-quarter 2025 EPS has moved 11.2% north, while that for fourth-quarter 2025 EPS has moved 4.3% south over the past 30 days. The same for full-year 2025 has increased 93.6% while that for 2026 has decreased 7%.
Image Source: Zacks Investment Research
The consensus estimates for COIN’s 2025 and 2026 revenues indicate year-over-year increases. The consensus estimates for COIN’s 2025 and 2026 EPS indicate a decline.
COIN stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.