Coinbase’s strong third-quarter performance has reignited optimism among major Wall Street firms, with analysts pointing to derivatives, stablecoins, and its expanding Base network as the next growth drivers heading into 2026.
Coinbase Revenue Rebounds Sharply in Q3
Coinbase reported $1.9 billion in total revenue for the third quarter, a 37% increase from the previous period, reflecting a sharp rebound in trading activity — particularly in Ether markets — alongside a jump in subscription and services income. The results helped offset a minor decline in Bitcoin’s share of total trading volume.
Analysts say this signals a strategic evolution beyond spot trading, as Coinbase increasingly positions itself as a full-spectrum crypto infrastructure company. Shares of COIN rose 8% to $356, following the release of results.
Derivatives and Stablecoins Lead Next Growth Phase
William Blair analysts reiterated an “Outperform” rating, calling Coinbase “the most secure and efficient crypto platform” and highlighting derivatives and stablecoin-based payments as the company’s next major revenue pillars.
They noted profit margins near 45% for the quarter, expecting them to rise toward 60%+ over time as operational scale improves. “Growth will not be linear,” the report stated, “but stablecoin commerce, staking, and DeFi are the future.”
Benchmark’s Mark Palmer also emphasized Coinbase’s “Everything Exchange” strategy, underscoring stablecoin revenue rising 7% quarter-over-quarter to $355 million. He said this trend “adds stability to Coinbase’s revenue profile,” blending fee and yield income while supporting ecosystem expansion.
JPMorgan and Bernstein See Long-Term Potential
JPMorgan analysts called the quarter a “commanding beat,” with earnings per share at $1.44 and EBITDA at $801 million, both exceeding expectations. However, they warned that operating expenses may rise 12% in Q4 due to hiring and acquisitions, including Deribit.
Bernstein maintained its “Outperform” rating and $510 price target, describing Coinbase as building the “AWS of crypto financial infrastructure.” Analyst Gautam Chhugani suggested a potential “crypto Venmo moment” as Coinbase’s Base app merges trading, payments, and social features.
The consensus across major firms is clear — Coinbase has matured into a diversified financial ecosystem, less dependent on volatile trading cycles. With robust derivatives growth, stablecoin adoption, and a strong balance sheet, analysts believe Coinbase is entering its next phase of sustainable expansion.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.