Base token could unlock up to $34 billion in value for Coinbase, says JPMorgan
Coinbase’s Layer-2 network, Base, could significantly enhance the company’s valuation and strategic positioning, according to a new report from JPMorgan. The investment bank’s analysts estimate that a potential Base token launch could unlock between $12 billion and $34 billion in overall market value, underscoring growing institutional confidence in the on-chain ecosystem developed by Coinbase. Of this projected value, Coinbase could capture between $4 billion and $12 billion, depending on its share of the token supply and the token’s market performance.
Base, which operates as a Layer-2 scaling answer built on ETH, has recorded rapid adoption since its launch. Reports indicate that the network now holds more than $5 billion in total value locked (TVL) and facilitates approximately nine million daily transactions. JPMorgan highlighted these figures as evidence of Base’s strong network activity and potential to drive long-term growth for Coinbase beyond its core trading operations.
Expanding beyond trading fees
The introduction of a Base token would mark a strategic shift for Coinbase, enabling it to diversify its revenue model beyond platform fees. Analysts at JPMorgan noted that the token could open new revenue streams through staking, protocol governance, and transaction fee participation. This shift could align Coinbase’s business model more closely with decentralized networks such as ETH, Solana, and Avalanche, all of which rely on native tokens to support network operations and community-driven ecosystems.
The report also stated that a Base token could assist Coinbase further integrate into the decentralized finance (DeFi) ecosystem by incentivizing developers, users, and liquidity providers to participate in the network. This increased engagement could enhance Base’s transaction volumes and boost its overall market influence within the broader blockchain landscape.
Positive outlook tempered by regulatory uncertainty
JPMorgan’s analysis included an upgrade of Coinbase’s stock rating to “Overweight,” raising its price target to approximately $404 per share. The bank cited Base’s potential token launch as one of the primary catalysts behind its optimistic outlook, suggesting that it could represent a “transformative moment” for the company. However, the report cautioned that regulatory challenges remain a major uncertainty, as any new token issuance in the U.S. would face scrutiny regarding its classification as a security or utility.
Execution risks also remain a consideration. JPMorgan noted that the success of a Base token would depend on several factors, including the design of its tokenomics, governance structure, and long-term incentive mechanisms. Poor execution or misalignment between stakeholders could limit adoption and reduce the token’s market potential.
Despite these risks, the report reflects a growing institutional belief that Coinbase is well-positioned to capitalize on the next wave of blockchain innovation. As Base continues to scale and attract on-chain activity, a potential token launch could redefine how public companies like Coinbase engage with decentralized networks.
If successful, the Base token could become one of the most significant developments in Coinbase’s history, marking a pivotal moment for the integration of traditional finance and decentralized technology. The move could also strengthen Coinbase’s leadership in the evolving Web3 ecosystem while positioning Base as a cornerstone of on-chain economic growth.
