The cryptocurrency market has been a strange one for a long time now, and for cryptocurrency stocks like Coinbase (NASDAQ:COIN) it’s been just about as strange for them. Though Coinbase made a major move that won it analyst kudos, that wasn’t enough to stop it from sliding over 3% in Thursday afternoon’s trading session.
Coinbase finally managed to land approval to sell cryptocurrency futures to its customers. That’s a move that turns a lot of formerly-established logic on its head, and one that JMP Securities analyst Devin Ryan recently applauded. While Ryan noted that the revenue opportunity this move represents would be lower than expected in the early days, it’s the near-term future and beyond that Ryan was looking forward to. Ryan noted that the new offering would bring with it new customers, and from there, expand further upside potential while not costing it much, if any, in current user figures.
In fact, some reports suggest the gains might kick in faster than even Ryan expects. After all, people trade in cryptocurrency derivatives a lot more than they trade in actual cryptocurrencies, so having access to derivatives should draw in plenty of new users. Granted, just how fast they’ll come and to what extent they’ll trade—especially given the macroeconomic factors—remains to be seen. But it’s still looking very good for Coinbase.
Analysts, meanwhile, are very much split on Coinbase’s overall future. With six Buy ratings, eight Hold, and eight Sell, Coinbase stock is considered a Hold by analyst consensus. Further, with an average price target of $80.68, Coinbase stock comes with a minor 5.98% upside potential.
