This year, the fog surrounding stablecoin legislation has finally lifted, causing the stock of Coinbase (COIN) to surge by 60% over the past 12 months and 23% over the year to date. 

Beyond improved regulatory clarity and a series of product rollouts, the inclusion of the stock in the prestigious S&P 500 Index ($SPX) this May has also aided in the surge. The momentum carried into June, when Coinbase briefly became the top performer of the index. 

After cooling off over the last month with shares down about 18%, can Coinbase sustain this momentum and keep posting gains? 

About Coinbase Stock

Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase is a leading cryptocurrency exchange platform. The company offers a secure and user-friendly platform to trade digital assets, including Bitcoin (BTCUSD) and Ethereum (ETHUSD). Coinbase was one of the first crypto trading platforms to go public. The company has played a role in making digital currencies mainstream. It serves millions of users worldwide. With a market cap of $80 billion, the company aims to build a more accessible financial system. 

This year, cryptocurrencies have been experiencing a rise, with Bitcoin gaining 15.4% year-to-date (YTD). This was driven by progress on cryptocurrency legislation and the adoption of digital currencies by financial institutions. For instance, President Donald Trump signed the GENIUS Act into law on July 18, creating a new framework for stablecoin regulation. 

As a part of a partnership with Circle Internet Group (CRCL), a non-bank operator of the stablecoin USDC, Coinbase generates a considerable amount of revenue from the stablecoin pegged to the U.S. dollar. This new legislation ensures that stablecoin revenue continues to flow in for Coinbase. 

Coinbase was also lauded for establishing a European crypto hub in Luxembourg under the Markets in Crypto Assets (MiCA) regulatory framework. This milestone enables the company to offer its cryptocurrency products and services to 450 million people across all 27 member states of the European Union (EU). 

A Look Inside Coinbase’s Q2 Results

Coinbase reported $1.5 billion in total revenue for Q2 2025, down 26% quarter-over-quarter. Transaction revenue dropped 39% to $764 million, and subscription and services revenue decreased 6% to $656 million. 

Adjusted net income was $33 million, and adjusted EBITDA landed at $512 million. 

At quarter’s end, Coinbase held $9.3 billion in USD resources (including cash and USDC) and maintained $1.8 billion in crypto assets earmarked for investment. These figures underscore the company’s liquidity position and capacity to invest in innovation and new growth drivers.

What Do Analysts Think of Coinbase Stock?

Analysts have an overall bullish stance on Coinbase, giving a consensus rating of “Moderate Buy.” Of the 32 analysts rating the stock, 13 have rated it a “Strong Buy,” one suggests a “Moderate Buy,” 15 analysts are playing it safe with a “Hold” rating, while three analysts have given a “Strong Sell” rating. 

The average price target of $375.27 implies nearly 24% upside potential over the next 12 months, while the Street-high target of $510 implies COIN could gain nearly 70% from here.