© Reuters
Investing.com — The recent rise in digital asset prices to all-time highs has supported rising trading volumes and participation by retail investors on cryptocurrency exchange Coinbase (NASDAQ:), according to analysts at Goldman Sachs.
In a note to clients on Thursday upgrading the stock to “Neutral” from “Sell,” the analysts noted that daily volumes on Coinbase have “reached levels not seen since 2021.” Analysts were now estimating that the trend will increase Coinbase's annual revenue by 48% and increase core profits by 114%.
“[O]Our analysis suggests that much of the recent price action has been driven by high retail participation (we estimate approximately 20% of volumes), which fundamentally presents much more attractive take rates for [Coinbase] (although we expect some downward pressure on retail take rates due to higher participation in advanced trading),” Goldman Sachs analysts said in a note.
Earlier this week, it hit a new record thanks in large part to continued capital flows into newly approved spot exchange-traded funds in the United States and anticipation of an upcoming “halving” event.
The token has more than quadrupled from a low of around $15,000 hit in November 2022, in the wake of the high-profile collapse of crypto exchange FTX. Bitcoin is also up around 150% in 2023.
