JPMorgan Estimates Coinbase’s Base Token Could Soar to $34 Billion
JPMorgan analysts have suggested that Coinbase could unlock up to $34 billion in value through the future launch of a Base network token. The investment bank described the potential token as a major new revenue stream, adding to Coinbase’s growing focus on USDC yield opportunities and on-chain trading.
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In a detailed report released on Friday, JPMorgan’s equity research team upgraded Coinbase’s rating and increased its December 2026 share price target to $404. The report pointed to “emerging monetization opportunities and abating risks” as the company continues to expand its presence across the Layer 2 blockchain ecosystem and strengthen its stablecoin economics.
According to JPMorgan, the launch of a Base token could help “equitize the success” of Coinbase’s Ethereum-based Layer 2 network, Base. The network, launched in August 2023, has quickly become one of the most active scaling solutions in the market. Data from DefiLlama shows that Base now holds more than $5 billion in total value locked (TVL) and processes over 9 million daily transactions.
The analysts noted that introducing a Base token could give Coinbase a fresh way to reward ecosystem participants while driving further adoption of its on-chain products. With its growing ecosystem, Base is shaping up to be one of Coinbase’s strongest assets for future growth.
JPMorgan Projects $34 Billion Market Cap as Coinbase Explores Base Token Launch
JPMorgan analysts estimate that Coinbase’s potential Base network token could achieve a market capitalization between $12 billion and $34 billion, driven by strong network growth and what they describe as “lofty token economics.” The bank suggested that Coinbase may retain about 40% of the total token supply, which could translate into $4 billion to $12 billion in additional equity value for the company.
The projection aligns with Coinbase’s recent comments indicating that it is “beginning to explore” a native token for Base. Speaking at the BaseCamp conference in Vermont last month, Jesse Pollak, creator of Base, said such a token could promote decentralization and create more opportunities for builders in the ecosystem.
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Coinbase CEO Brian Armstrong also addressed the topic on X (formerly Twitter), confirming that while the company is exploring the idea, there are currently no definitive plans for a token launch. If introduced, the Base token could become a cornerstone of Coinbase’s long-term Layer 2 and on-chain growth strategy.
JPMorgan Highlights Coinbase’s USDC Yields and DEX Integration as Key Growth Drivers
JPMorgan analysts also highlighted Coinbase’s USDC yield program as a potential source of additional revenue growth. Currently, Coinbase passes most of the interest earned from Circle’s USDC reserves—around $400 million annually—back to users as staking rewards. However, the bank noted that Coinbase is considering a new structure that would restrict these yield rewards to Coinbase One subscribers, similar to Robinhood Gold’s tiered membership model.
If implemented, the change could allow Coinbase to retain nearly $374 million in yearly income that is currently distributed to general users, creating a new margin boost for the company.
JPMorgan further pointed to Coinbase’s integration of a decentralized exchange (DEX) aggregator within its Base app as a strategic move to stay competitive in the DeFi space. With decentralized exchanges now representing about 25% of total spot crypto trading volume, the feature could help Coinbase capture activity from on-chain traders while protecting its market position.
As of now, Coinbase shares trade near $355, according to The Block data. With JPMorgan’s price target set at $404 by December 2026, the stock appears well-positioned—especially considering its record high near $430 reached in July following the GENIUS Act stablecoin bill approval.
