As reported by The Block, shares of the renowned cryptocurrency exchange, Coinbase Global (ticker COIN), witnessed a monumental surge, hitting a new all-time closing high. Thursday’s trading session saw the stock reach its zenith since its debut in the public market in April 2021, closing at a whopping $375.07 per share, indicating a 5.5% hike according to The Block’s COIN price data.
The stock has been consistently outperforming, with a staggering 24% rise over the past five sessions, and an overall increase of 40% in the last month. The previous record for Coinbase’s closing price was $357.39, set in November 2021. This consistent growth has expanded the company’s market cap to an impressive $89 billion.
Undeniably, a significant portion of this surge can be attributed to the debut of Circle Internet’s (ticker CRCL) stock in the market. The company behind the world’s second-largest stablecoin started trading on June 4 at $31 per share and has seen a 500% surge since then, closing Thursday’s session at $213.63, as per data from The Block.
It’s worth noting that Coinbase has benefitted greatly from Circle’s regulatory filings and recent comments. As per their agreement, Coinbase receives 50% of all the residual interest income from USDC reserves. In 2024 alone, Circle gave more than 60% of its earnings from USDC reserves to Coinbase as a distribution fee.
While trailing behind market leader USDT, Circle’s USDC holds approximately $61.45 billion of the total stablecoin market, as per The Block’s Data Dashboard. Furthermore, Coinbase’s inclusion in the S&P 500 — the first-ever pure-play crypto company in the benchmark index, which became effective on May 19, has also positively impacted the stock.
Analysts are optimistic about COIN’s recent performance, with Bernstein recently elevating its price target to $510 and labeling Coinbase as the “Amazon of crypto financial services.”
Disclaimer: The Block is an independent media outlet that reports on news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. The Block operates independently to deliver unbiased, impactful, and timely information about the crypto industry. This article is solely for informational purposes and should not be taken as legal, tax, investment, financial, or other advice.
