Coinbase Shares Decline Even with Prediction of 7x Increase in Stablecoin Revenue During Bitcoin Market Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Should l Buy COIN?
Source: stocktwits
Coinbase's Revenue Potential: Bloomberg Intelligence estimates that Coinbase's stablecoin revenue could increase significantly, potentially by two to seven times, if adoption accelerates and favorable legislation continues.
Impact of Regulation: Concerns have been raised about potential restrictions from Washington that could affect Coinbase's business model, particularly regarding offering stablecoin rewards, which could impact their revenue-sharing agreement with Circle.
Stock Performance: Coinbase's stock (COIN) experienced a decline, dropping nearly 30% this year, with analysts expressing bearish sentiment and adjusting price targets downward amid market pressures.
CEO's Perspective: Coinbase CEO Brian Armstrong suggested that prohibiting stablecoin rewards could ironically make the company more profitable, as they would continue to benefit from their existing revenue-sharing agreements.
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Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise
25 Analyst Rating
17 Buy
7 Hold
1 Sell
Moderate Buy
Current: 182.360
Low
230.00
Averages
361.63
High
440.00
Current: 182.360
Low
230.00
Averages
361.63
High
440.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the cryptoeconomy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. Its platform helps people and institutions to engage with crypto assets, including trading, staking, safekeeping, spending, and global transfers. It offers products and services to various customer groups: individuals, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime Trading, markets, base protocol and Coinbase wallet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- High-Yield Rewards Controversy: Crypto platforms like Coinbase offer rewards of up to 3.5% annual yield for stablecoin holders, significantly higher than traditional bank deposit rates averaging below 0.1%, raising concerns on Wall Street about potential deposit shifts that could undermine lending supporting the broader economy.
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- Trump Meets Coinbase CEO: U.S. President Trump privately met with Coinbase CEO Brian Armstrong on Tuesday, later publicly supporting Coinbase's stance in a lobbying dispute with banks, indicating his attention and support for the cryptocurrency industry.
- Crypto Bill Stalled: Trump urged banks to make a good deal with the crypto industry to advance the market-structure bill, emphasizing that the threat posed by banks to the recently adopted Genius Act is unacceptable, echoing Coinbase's position.
- High-Yield Rewards Controversy: Crypto platforms like Coinbase offer rewards of up to 3.5% annual yield for stablecoin holders, significantly higher than traditional bank deposit rates averaging below 0.1%, raising concerns on Wall Street about potential deposit shifts that could undermine lending supporting the broader economy.
- Call for New Regulatory Framework: The proposed bill aims to set new rules for regulating crypto tokens, with Coinbase playing a central role in advocating for this legislation, which seeks to provide much-needed regulatory clarity for the digital asset industry.
See More
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- Strong Economic Data: The February ADP employment report revealed an addition of 63,000 jobs, surpassing expectations of 50,000, indicating continued growth in the labor market and boosting investor confidence in economic recovery.
- Service Sector Expansion: The US ISM services index unexpectedly rose to 56.1 in February, significantly better than the anticipated 53.5, reflecting the fastest pace of expansion in 3.5 years and further supporting the stock market rally.
- Oil Price Volatility: Crude oil prices surged over 1% due to the closure of the Strait of Hormuz, despite reports suggesting Iran's willingness to discuss terms for ending the conflict, intensifying market concerns over energy supply.
- Market Performance: The S&P 500 index rose by 0.78%, the Dow Jones Industrial Average increased by 0.49%, and the Nasdaq 100 index climbed by 1.51%, reflecting optimistic expectations regarding economic resilience and corporate earnings.
See More
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- Bitcoin Price Surge: Bitcoin rallied 7.3% to $73,042 on Wednesday, driving crypto-linked stocks like Coinbase and Riot Platforms up by 14.5% and 8.1% respectively, indicating a significant improvement in market sentiment.
- Trust Structure and Partnership: Morgan Stanley Bitcoin Trust plans to store its bitcoin with Coinbase and BNY, with BNY serving as administrator and cash custodian while Coinbase acts as co-custodian, enhancing security and transparency for investors.
- Market Inflection Point: Analysts suggest the crypto market may be at an inflection point, as recent policy support and improved sentiment could end the 44% decline since October 10 and potentially trigger a bull market, indicating a possible recovery.
- Trump's Influence: Trump's support for the CLARITY Act is seen as a significant positive for the crypto market, with analysts believing it will bolster market confidence and potentially enhance the long-term fundamentals of bitcoin and related assets.
See More
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- Share Acquisition Details: Kemnay Advisory Services Inc. increased its position in MercadoLibre by 1,385 shares during Q4 2026, with an estimated trade value of $2.91 million, bringing total holdings to 5,623 shares and reflecting a $1.42 million increase from the previous quarter due to both trading and stock price effects.
- Holding Proportion Analysis: Following this purchase, Kemnay's stake in MercadoLibre represents 1.71% of its 13F AUM, indicating a sustained bullish outlook on the company despite a 3.77% decline in share price over the past year.
- Market Performance Overview: As of February 16, 2026, MercadoLibre shares were priced at $1,988.26, with a market capitalization of $100.80 billion, maintaining rapid revenue growth despite pressures from increased e-commerce competition and rising bad loans.
- Investor Outlook: Kemnay has held MercadoLibre shares since Q2 2020, having previously sold off shares, but has now added shares in each of the last four quarters, suggesting they view the current stock price as an attractive buying opportunity, potentially leading to further purchases in the future.
See More
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- U.S. Stock Market Performance: Stock indexes in the U.S. closed higher on Wednesday, indicating a positive market trend.
- Index Gains: The S&P 500 gained 1.29%, the Dow Jones increased by 0.78%, and the Nasdaq rose by 0.49%.
See More
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- High-Level Meeting: Coinbase CEO Brian Armstrong met privately with President Trump at the White House on Tuesday, after which Trump urged banks to make a good deal with the crypto industry on social media, indicating a shared agenda in pushing for crypto legislation.
- Legislative Support: The CLARITY Act mentioned by Trump is reportedly threatened by banks, with Armstrong previously accusing them of stifling competition, highlighting the escalating tension between the crypto sector and traditional banking institutions.
- Market Reaction: Coinbase shares surged over 15% following the news, trading around $209, reflecting market optimism regarding the prospects of crypto legislation, particularly in light of potential growth in stablecoin-related revenues.
- Political Funding: The Fairshake super PAC has raised $190 million for the 2026 midterms, primarily funded by Coinbase, Ripple, and Andreessen Horowitz, indicating the growing political influence of the crypto industry, which may impact the legislative process.
See More
