Coinbase Stock Slides as Stablecoin Revenue Eyes Massive Growth in Tough Crypto Market
Coinbase Shares Fall Even With Big Stablecoin Hopes
Coinbase stock took a hit in recent trading. The shares dropped more than 6 percent in one session and fell another 1.88 percent overnight. This happened even though new forecasts show the company could see its
The stock now trades near 160 dollars. It is down almost 30 percent for the year so far. Many retail traders on social platforms feel bearish about the name right now.
How Stablecoin Income Works Today
Last year Coinbase earned about 1.35 billion dollars from stablecoins. That amount made up 19 percent of all company revenue. Most of the money came from a revenue share deal with Circle on USDC reserves. Coinbase keeps half of the interest earned on those reserves.
Analysts believe this income stream could grow two to seven times larger if more people start using stablecoins and if new rules support wider adoption. A new law called the GENIUS Act could help speed up that growth.
Rules Could Help or Hurt Growth
Still, the path to higher revenue is not simple. Lawmakers in Washington are working on market structure bills. Some versions might stop exchanges from paying rewards on stablecoins. If that rule passes, Coinbase could lose part of its current deal with Circle.
Bloomberg Intelligence analyst Paul Gulberg noted that Coinbase needs clear and friendly details in the final crypto bill to reach the highest growth numbers.
Analysts Give Mixed Views
Not every expert is optimistic. Monness Crespi analyst Gus Gala told clients to sell the stock. She set a price target of 120 dollars, which is 25 percent below recent prices. Gala pointed to tariff worries, ETF outflows, and large holders moving coins to exchanges as reasons for the drop.
Another firm, Baird, lowered its target to 165 dollars but kept a neutral rating on the shares.
CEO Says Limits Could Boost Profits
Interestingly, Coinbase CEO Brian Armstrong said limits on paying yield to users could actually help the company. He explained that if the firm could no longer pass most of the interest to customers, it would keep more money from the Circle deal and become more profitable.
Bitcoin Selloff Adds Pressure
The broader crypto market also faced selling. Bitcoin fell more than 3 percent to under 63,000 dollars. The total crypto market cap dropped 2.4 percent to 2.25 trillion dollars. Data showed 380 million dollars in liquidations in one day, with most coming from long positions.
These moves in Bitcoin and other coins added extra pressure on Coinbase shares because the company earns fees from trading activity.
What Comes Next
Coinbase now sits at a key point. Stronger stablecoin use could bring big revenue gains. At the same time, new rules and a weak Bitcoin price create real risks. Investors will watch both Washington and the crypto market closely in the weeks ahead to see which path the stock takes.
