JPMorgan has significantly upgraded its outlook on Coinbase, projecting the cryptocurrency exchange could unlock billions in market capitalization from a potential token for its Base network and revised monetization strategies.
The bank’s equity research team now sees a native token for Base generating between $12 billion and $34 billion in market capitalization. This assessment led JPMorgan to raise Coinbase’s stock rating and set a price target of $404 for December 2026.
Coinbase stands to retain 40% of the total issuance of such a token, equating to an additional $4 billion to $12 billion in equity value for the company, according to JPMorgan. The optimistic forecast is based on “emerging monetization opportunities and reduced risks” as Coinbase expands its Layer 2 ecosystem and stablecoin economy.
Base, Coinbase’s Layer 2 network, launched on Ethereum in August 2023. It has since accumulated over $5 billion in total value locked (TVL) and processes more than 9 million transactions daily.
Coinbase has confirmed it is “beginning to explore” the possibility of a native token for Base. Jesse Pollak, the network’s creator, stated last month that an issuance could accelerate decentralization and broaden opportunities for developers. CEO Brian Armstrong later noted on X that while the idea is “on the table,” there are “no definitive plans” at present.
JPMorgan’s report also highlights Coinbase’s USDC yield program as another evolving monetization strategy. Currently, the company distributes approximately $400 million annually in interest from USDC reserves to its customers.
However, Coinbase is analyzing whether to limit these rewards exclusively to subscribers of its premium Coinbase One plan. If implemented, this change could allow Coinbase to retain an estimated $374 million annually.
The report also views favorably the integration of a decentralized exchange (DEX) aggregator within the Base application. This move would help Coinbase address the growth of decentralized trading, which now accounts for roughly 25% of the total crypto spot market volume.
Coinbase shares are currently trading around $355. JPMorgan’s new $404 price target for December 2026 is considered achievable, especially given the stock briefly neared $430 in July, following U.S. legislative developments for stablecoins.