As long as Coinbase stock is concerned, there is a very gloomy expectation for its growth in 2023 and in the long term.
Dear readers welcome to another episode of the Coinspeaker Advent Calendar where we get to explore potential expectations on the share price of Coinbase Global Inc (NASDAQ: COIN) in 2023.
Coinbase is arguably one of the most notable digital currency trading platforms in the United States and around the world. According to data from CoinMarketCap, Coinbase currently has an average daily volume of $1.9 billion, trailing only Binance Exchange in terms of recorded transaction volume.
Coinbase Exchange and its stock serve a number of roles on Wall Street, including as a viable means to trade cryptocurrencies in a regulated way. Coinbase also offers a robust Crypto Custody service that helps institutional investors in safeguarding their assets. In addition, Coinbase stock comes off as a major avenue for corporate buyers to gain exposure to the broader digital currency ecosystem.
Coinbase was founded in 2012 by Brian Armstrong and Fred Erhsam and for several years, they helped pioneer the growth of the industry as a whole. The model that Coinbase showcased has been duplicated by many competitors over the past year and per the general outlook in the industry, Coinbase stock now follows the market trend in all aspects.
This implies that in periods of the crypto market boom, the chances that COIN will surge are very high and when there is a liquidity crunch in the market, the stock price always typically takes a bearish plunge.
Coinbase (COIN) Stock History
Coinbase operated as a privately held company for the better part of its existence, and it went public via a direct listing in April 2021. The company’s stock topped an All-Time High (ATH) of $429.12 on the Nasdaq Global Select Market. With its impressive debut as a publicly traded company, Coinbase at a time was more valuable than Intercontinental Exchange Inc (NYSE: ICE).
The debut of Coinbase coincided with the era of the crypto market boom which saw Bitcoin (BTC) surge to its ATH above $68,000 in November last year. After that time, COIN stock has slipped by more than a mile and the high-growth stock that was the delight of top investors is now trading at $36.60.
Expectations on Coinbase Stock for 2023
As long as Coinbase stock is concerned, there is a very gloomy expectation for its growth in 2023 and in the long term. The stock, according to analysts from Atlantic Securities projects that the shares will range between $67 and $46 in 2023. This estimate is quite bullish considering analysts from other top investment banks show a lower projection for the tech stock.
The outlook on the stock has continually been dampened by the consistent loss it has recorded in the three quarters it has shared its performance report this year. The firm reported a $429 million loss in Q1, about $1 billion in Q2, and over $540 million in Q3, showing the business is not near profitability.
The continuous macroeconomic headwind as well as the plunge in crypto liquidity as fueled by FTX Bankruptcy has continued to dampen the overall outlook of the company’s shares. In all, we expect Coinbase to stay as a viable investment in the long term, considering its aggressive business diversification strategies.
For our readers looking to back Coinbase in the coming year, caution and risk management are advocated. Stay tuned for other episodes in this Coinspeaker Advent Series.