Surge in Cryptocurrency Prices Fuels Increase in Coinbase Trading Volumes

Investing.com — Recent record-breaking increases in the value of digital currencies have led to a noticeable spike in trading activity and retail investor engagement at the cryptocurrency platform, Coinbase (NASDAQ:), as reported by Goldman Sachs analysts.

As part of an update issued to clients on a Thursday, the analysts augmented the status of Coinbase shares to “Neutral” from “Sell.” They observed that daily trading on the platform had surged to peak levels previously witnessed only in 2021. The analysts now predict that this surge will likely amplify Coinbase’s yearly income by 48% while doubling its fundamental earnings by 114%.

“Our examination indicates that the current bullish trends in price are largely influenced by a rise in retail trading (we gauge this at about 20% of the total volume), which inherently presents attractive earnings potential for [Coinbase] despite potential reductions in retail earnings rates due to increased Advanced trade activity,” the analysts from Goldman Sachs mentioned in their update.

Earlier in the week, hit a new pinnacle, its all-time high, which can be attributed significantly to consistent investments into newly sanctioned U.S. spot exchange-traded funds and the expectancy of a “halving” event soon to take place.

The value of the token has climbed over four times from a low near $15,000 in November 2022, a downturn that followed the notorious collapse of the FTX crypto exchange. Additionally, Bitcoin recorded an approximate 150% gain in the year 2023.