JPMorgan Believes Coinbase May Access a $34B Web3 Opportunity — Is Base the Hidden Gem of Web3?

JPMorgan's Bullish Stance: JPMorgan has shifted to a positive outlook on Coinbase, highlighting the potential of its Base network as a $34 billion opportunity, which could serve as a significant revenue source beyond traditional trading activities.

Base's Revenue Potential: The Base network is expected to generate income through various channels, including on-chain transactions, developer engagement, and the expansion of decentralized finance (DeFi) applications, allowing Coinbase to thrive even in stagnant market conditions.

Web3 Infrastructure Focus: JPMorgan emphasizes that the future of Web3 will favor platforms that control the underlying infrastructure, positioning Coinbase's Base as a key player capable of earning recurring fees from its ecosystem.

Shift in Business Model: Transitioning from exchange revenue to infrastructure revenue could make Coinbase's business model more scalable, predictable, and valuable, according to JPMorgan's analysis.