Benchmark lifts Coinbase target to $270, citing shift to core on-chain infrastructure

Wall Street investment bank and research firm Benchmark has reaffirmed its ‘Buy’ rating for Coinbase (COIN), raising its price target to $270 from the previous $260. The revised outlook reflects a growing recognition that Coinbase is evolving beyond its origins as a simple cryptocurrency exchange into a core infrastructure platform for the on-chain economy.

Coinbase’s expanding role in the on-chain ecosystem

Benchmark’s analysis highlights that Coinbase is now deeply embedded in multiple segments of the digital asset landscape, including stablecoins, derivatives, tokenization, decentralized finance (DeFi), prediction markets, and AI commerce. This diversification, according to the firm, positions Coinbase as a foundational layer for the broader on-chain economy, rather than merely a trading venue.

The upgrade comes despite a challenging first quarter for the company. Coinbase reported a net loss of $394 million on revenue of $756 million, both of which fell short of market expectations. However, Benchmark appears to be looking beyond short-term earnings volatility, focusing instead on the company’s strategic trajectory and market share gains.

Market share and assets under custody reach record levels

One of the key metrics driving Benchmark’s confidence is Coinbase’s global crypto trading market share, which has climbed to an all-time high of 8.6%. This increase suggests that despite a difficult trading environment, Coinbase is capturing a larger portion of overall market activity.

Additionally, assets under custody on the platform have risen to approximately $294 billion. This figure underscores the trust that institutional and retail clients place in Coinbase as a custodian, a role that has become increasingly important as regulatory scrutiny around asset safekeeping intensifies.

What this means for investors

For investors, Benchmark’s revised price target signals a belief that Coinbase’s long-term value lies in its infrastructure capabilities, not just its exchange operations. The company’s expansion into areas like tokenization and AI commerce could open new revenue streams that are less dependent on trading volume and market volatility.

However, the first-quarter net loss and revenue miss serve as a reminder that the path to profitability remains uncertain, particularly if crypto market conditions remain subdued. Benchmark’s analysis suggests that the market may be underestimating Coinbase’s potential to generate value from its broader platform.

Conclusion

Benchmark’s price target increase reflects a fundamental reassessment of Coinbase’s business model, from a cyclical exchange to a structural infrastructure play. While near-term financial results have been mixed, the firm’s growing market share and expanding role in the on-chain economy provide a compelling narrative for long-term investors. The $270 target implies approximately 15% upside from recent trading levels, contingent on Coinbase successfully executing its infrastructure strategy.

FAQs

Q1: Why did Benchmark raise its price target for Coinbase despite a quarterly loss?
Benchmark focused on Coinbase’s strategic evolution into a core on-chain infrastructure platform, citing record market share and growing assets under custody as indicators of long-term value beyond short-term earnings.

Q2: What specific areas of the on-chain economy is Coinbase involved in?
According to Benchmark, Coinbase is active in stablecoins, derivatives, tokenization, decentralized finance (DeFi), prediction markets, and AI commerce, positioning it as a multi-segment infrastructure provider.

Q3: How does Coinbase’s market share compare historically?
Coinbase’s global crypto trading market share reached an all-time high of 8.6%, indicating that the company is capturing a larger portion of overall trading activity despite a challenging market environment.