Quick overview

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Coinbase’s (COIN) stock surged to 52-week highs on Wednesday, with Bernstein analysts describing the cryptocurrency platform as the “one-stop Amazon” of crypto services. Shares rose by more than 3 percent, nearing their record close of $357.39, which was reached on November 9, 2021.

 Gautam Chhugani and his team at Bernstein reported on Wednesday, calling “Coinbase is the most misunderstood company in our Crypto coverage universe,” raising their price target from $310 to $510, maintaining an Outperform rating.

 Coinbase controls a significant portion of the underlying assets of U.S. spot bitcoin ETFs, operates the largest stablecoin business among exchanges, and manages U.S. cryptocurrency trading.

“Coinbase has rapidly expanded its divisions, including institutional custody, Base blockchain services, and Prime lending,” the analysts noted.  Coinbase has positioned itself as the “Amazon of crypto financial services by offering different crypto financial services.

Chhugani pointed out that the bearish projections surrounding Coinbase have not materialized. He stated, “Coinbase’s market share has remained strong despite increasing competition,” adding that the arrival of traditional brokerage competitors could take months.

Coinbase’s leadership has also highlighted its extensive reach. Co-founder and CEO Brian Armstrong mentioned on X, “Underappreciated: @coinbase is powering crypto integrations for approximately 200 banks, brokerages, fintechs, and payment companies.”

Sean Farrell, Fundstrat’s head of digital asset strategy, suggested that investors who missed the recent spike in the stock price may still have an opportunity to enter the market. “Despite the significant rally we’ve seen, I still believe there’s additional upside for Coinbase,” he remarked.

Coinbase rally and other crypto-related stocks have been supported by growing institutional adoption of bitcoin (BTC-USD) and the momentum surrounding stablecoin regulation. Circle (CRCL) is the company that issues USD.