Coinbase Stock Soars 9% After JPMorgan Upgrade: Base Network & USDC Rewards Fuel $404 Price Target (2025)

• Why Did JPMorgan Go Bullish on Coinbase?
• Is Base Network Really That Important?
• How Do USDC Rewards Factor In?
• What's Next for COIN Stock?
• Your Burning Coinbase Questions Answered

Talk about a bullish Friday! Coinbase (COIN) shares skyrocketed over 9% after JPMorgan upgraded the crypto exchange from "Neutral" to "Overweight," slapping a juicy $404 price target (that's 14% upside from current $354 levels). The catalyst? Two words:and. Here's why Wall Street's suddenly flipping tables for this crypto giant.

Why Did JPMorgan Go Bullish on Coinbase?

JPMorgan's analysts turned into crypto cheerleaders for three key reasons. First, they're betting big on Base – Coinbase's ethereum Layer 2 network that's been growing faster than a meme coin in bull market. Since its 2023 launch, Base has locked over $5 billion in total value (per DefiLlama) and processes 9+ million daily transactions. The kicker? JPMorgan predicts Base could hit a $12B-$34B market cap if it launches its own token, with Coinbase potentially holding 40% supply. That translates to $4B-$12B in equity value – not exactly pocket change.

Is Base Network Really That Important?

Absolutely. Think of Base as Coinbase's secret weapon against competitors like Arbitrum and Optimism. Jesse Pollak (Base's creator) recently hinted that a native token could decentralize the network and reward developers. Even CEO Brian Armstrong teased the idea on X, though he cautioned that "no final decision" has been made. What makes Base special? It's Ethereum's third-largest L2 by TVL, and its integration with Coinbase's 110M+ users gives it a distribution advantage most chains would kill for.

How Do USDC Rewards Factor In?

Here's where it gets spicy. JPMorgan estimates that tweaking Coinbase's USDC rewards program could add $374 million in annual profits. The plan? Shift interest rewards toward Coinbase One subscribers while reducing payouts for casual users. Given USDC's current yields and rates, this could be a margin goldmine. Remember when everyone mocked Coinbase for pushing subscriptions? Turns out they might've been playing 4D chess all along.

What's Next for COIN Stock?

With Q3 earnings dropping October 30, all eyes are on whether Coinbase can deliver. Zacks predicts $1.06 EPS (up 71% YoY) and $1.74B revenue (up 44.1%). The stock's already up 42.75% YTD, pushing its market cap to $91.07B. But here's the real question – can Base become the profit engine JPMorgan envisions? If so, today's $404 target might look conservative in hindsight.

Crypto data sourced from CoinMarketCap; financial metrics from TradingView.