Coinbase (COIN) stock is on the rise on Thursday after the crypto platform announced its expansion into Equities as well as prediction markets. Coinbase is looking to shift its platform into an “everything app” that blends traditional assets, derivatives, and on-chain tools. Year-to-date, COIN shares have been up and down, but at press time, the stock is up 1.6% in 24 hours.
An increase in crypto liquidity at the beginning of this week sent COIN and other crypto stocks down. Since Sunday, Coinbase shares have been down over 8%, a bearish way to close out a big year for crypto. However, the recent expansion by the platform could result in a hike in investor interest that can rescue its stock price. The cryptocurrency exchange will soon enable its existing users to trade stocks and event contracts tied to real-world outcomes, intensifying competition in retail investing and further pushing Coinbase into the spotlight of modern finance and investment.
In addition, Coinbase plans to diversify its offerings to include all asset classes, reducing its heavy reliance on crypto trading. Transitioning into a platform that can compete with stock trading platforms like Robinhood (HOOD) could open up an entirely new audience of investors, bringing more hype around its stock. Coinbase is also rolling out “custom stablecoins” and “Coinbase tokenization” to expand the offerings of institutional clients.
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Furthermore, Coinbase’s expansion and promise to become an “everything app” have driven bullish forecasts for the stock’s 12-month performance. Analysts remain divided on Coinbase’s (COIN) long-term market success, but most have a buy rating on the stock. Analysts from J.P. Morgan and Citi have lauded Coinbase’s expansion strategy, highlighting its potential to increase user engagement and revenue. On Wall Street, COIN stock has a Moderate Buy consensus rating based on 17 Buys, seven Holds, and one Sell rating.