"Coinbase, Second-Quarter Revenue Weak but… Long-Term Outlook Remains Positive"

Coinbase, the largest cryptocurrency exchange in the United States, gave back part of its share price due to underwhelming second-quarter earnings, but there is an opinion that, in the long term, there are no significant concerns.

On the 4th (local time), The Block, a specialized cryptocurrency media outlet, reported that the investment firm Benchmark analyzed in a report, "Coinbase's disappointing results for the quarter are merely short-term noise," adding, "There are no major issues in the long-term." Benchmark maintained its target price of $421 and a 'buy' investment opinion.

Coinbase's total revenue for the second quarter fell by 26% quarter-on-quarter to $1.5 billion, while trading revenue shrank by 39%. Asset trading volume on the platform also dropped by over 30% to $237 billion. However, net profit recorded $1.43 billion. Additionally, in the second quarter earnings announcement, Coinbase revealed it had made additional purchases of 2,509 Bitcoin (BTC) during the period.

Despite weak second-quarter results, Benchmark predicted that Coinbase has abundant growth momentum going forward.

First, it was analyzed that the U.S. crypto asset legislation could have a positive effect on Coinbase.

Benchmark explained, "Coinbase stands to benefit from increased stablecoin adoption based on its contract with Circle," and, "In addition, should the Clarity Act pass, the increase in institutional brokerage services would also aid Coinbase's performance."

Attention was also drawn to Coinbase's super app. Benchmark stated, "Coinbase is preparing a platform that integrates cryptocurrency trading, payments, DeFi, NFTs, and developer tools, and is further pursuing DEX integration," noting, "It is on the way to becoming the Amazon of Web3 finance."