Coinbase, the most prominent cryptocurrency exchange in the U.S., has reached a fresh 52-week high of $369 per share this week. The stock has delivered a return of over 40% in 2025 alone and a staggering 500% gain over the last three years. With such rapid growth, investors are now left wondering whether to hold, buy more, or lock in profits.
Stablecoins Driving a New Wave of Growth
A key driver behind Coinbase’s momentum is its major involvement with stablecoins—cryptocurrencies that are pegged to stable assets like the U.S. Dollar. Coinbase co-founded USDC with Circle and now earns 50% of the revenue generated through this coin. As stablecoins gain more trust and usability in the global economy, Coinbase is set to benefit immensely.
Expansion Into Traditional Finance
Coinbase is not just staying in the crypto lane. It is making major moves into mainstream financial services. The company recently announced a stablecoin-powered merchant payment platform that could compete with Visa. It has also partnered with American Express to launch a crypto rewards credit card. On top of that, Coinbase introduced a new Shopify integration that allows businesses to accept USDC for global e-commerce payments, simplifying crypto usage for everyday transactions.
Bitcoin Rebound Boosting Trading Activity
Coinbase’s trading volumes have also jumped, thanks to the strong rebound in Bitcoin prices, which are up 15% year-to-date and over 70% in the past year, now trading above $107,000. This recovery was largely fueled by the 2024 Bitcoin halving, which reduced the rate of new Bitcoin supply and improved demand dynamics. These favorable market conditions have increased investor activity on Coinbase, translating to higher revenue.
Regulatory Support Strengthens Investor Confidence
Regulatory clarity is also playing a major role in Coinbase’s success. In the U.S., the recently passed GENIUS Act has provided a legal framework for stablecoins, directly benefiting Coinbase and its partner Circle. Meanwhile, in Europe, Coinbase became the first U.S.-based crypto exchange to receive a MiCA license, allowing it to expand its services under the EU’s new crypto regulations. The company has chosen Luxembourg as its European headquarters.
Analyst Upgrades Signal Strong Momentum
Coinbase has started receiving bullish upgrades from top analysts. While the average price target set by Zacks was around $275, the stock has already passed that. Analysts at Bernstein have set a new high target of $510, highlighting stablecoin revenue, institutional adoption, and Coinbase’s growing dominance in crypto infrastructure as the main reasons.
Should You Buy, Hold, or Sell?
At present, Coinbase holds a Zacks Rank #3 (Hold), indicating a neutral outlook. But with earnings estimates likely to be revised upward and the company continuing to innovate, many believe an upgrade to “Buy” is possible in the near future. If the crypto bull market holds strong, Coinbase could be heading for even greater highs.
Conclusion: Long-Term Growth Looks Promising
Coinbase appears to be well-positioned for the future with its innovative offerings, strong regulatory position, and growing institutional interest. While the recent rally may tempt some investors to book profits, others might see this as just the beginning of a larger upward trend. As always, investors should evaluate their risk appetite and consult with financial advisors before making any decision.