The crypto exchange is now on track for its strongest monthly performance since November and has posted gains for three consecutive months \u2014 its first such streak since the end of 2023. On Thursday, Coinbase shares reached their highest level since the company\u2019s IPO in 2021.<\/p>\n
As reported by CNBC, much of the rally began with the exchange\u2019s inclusion in the S&P 500 at the end of May, just weeks after President Donald Trump\u2019s initial tariff announcements temporarily shook markets. Since then, the Senate\u2019s passage of the GENIUS Act and the success of stablecoin issuer Circle have significantly boosted investor sentiment toward Coinbase.<\/p>\n
Oppenheimer analyst Owen Lau told CNBC that two major concerns \u2014 fee compression and regulatory headwinds \u2014 have been overblown. \u201cCoinbase has been generating positive earnings consistently, which is why they were included in the S&P 500,\u201d Lau said, adding that stablecoin regulation via the GENIUS Act has reduced a critical source of uncertainty.<\/p>\n
The act establishes a federal framework for dollar-pegged stablecoins and grants new authority to the Treasury Department. Analysts expect this to create new growth avenues for firms like Coinbase that are already embedded in the stablecoin ecosystem.<\/p>\n
Coinbase\u2019s close relationship with Circle, the issuer of USDC, adds even more value. Citizens\u2019 head of fintech research Devin Ryan noted that Coinbase earns 100% of the revenue from USDC held on its platform and about 50% of all other USDC revenue \u2014 representing 99% of Circle\u2019s business. \u201cIf the market is bullish on Circle, then Coinbase offers indirect exposure without the same operational costs,\u201d Ryan said.<\/p>\n