Coinbase has emerged as the leading public beneficiary of Ethereum’s 80% surge since June, thanks to its strong crypto exchange, staking and Base Layer 2 integration, according to Bernstein.
Key Takeaways
- Ethereum rallied over 80% from June 5 through early August as fueled by stablecoin minting and Circle’s listing, marking a breakout in the DeFi-powered altcoin rally.
- Coinbase benefits from multiple ETH-linked revenue streams: sequencer fees on Base’s ~9 million daily transactions, expanded crypto wallet usage (Base App), and a $590M ETH treasury.
- Bernstein has rated Coinbase stock as “Outperform” with a $510 price target, underscoring confidence in its role in the cryptocurrency ecosystem.
A Monday report from Wall Street research firm Bernstein highlights Coinbase as the top public stock to capture gains from Ethereum’s recent rally. According to Bernstein, Ether (ETH) has surged approximately 80% since June 5, which is a significant climb attributed to renewed excitement around stablecoin issuance and the Circle (CRCL) listing. Ethereum’s central role in minting and settlement has become a clear growth driver.
Coinbase Captures the Upside Through Base and Treasury Holdings
Coinbase, the U.S.-based cryptocurrency exchange, is heavily interconnected with Ethereum’s ecosystem. Base, its Layer 2 network, can process over 9 million transactions within 24 hours, where transaction fees are paid in ETH, which generates an estimate of $75 million in annualized sequencer revenue, according to analysts. This, along with token integrations and Base App usage has significantly boosted ETH-denominated trading volume.
On top of network usage, Coinbase holds a substantial Ether treasury valued at roughly $590 million (about 136,782 ETH), making it a direct beneficiary of ETH’s price appreciation, according to CoinDesk’s latest news. Additionally, July trading sharply rose to about 40% in Coinbase’s Q2 earnings as compared to their quarterly average figures Bernstein connects directly to ETH’s momentum across its platforms.
Analyst Perspective & Market Impact
Meanwhile, an analyst emphasized in their X (formerly Twitter) post about the Bernstein take on how Coinbase is set to benefit the most while ETH continues to clear its way to its multi-year highs. Aave’s higher lending demand along with Ethereum’s surge was also highlighted in the post.
Following these developments, Bernstein reaffirmed its “Outperform” rating on Coinbase equity, maintaining its $510 price target. This suggests that the firm expects further upside as Ethereum powers more activity across trading, staking, and tokenized applications. Overall, Coinbase is increasingly seen not just as a crypto exchange, but as a multi-layer platform that offers services like its Base network, Base App wallet, staking, and token listings, placing it at the main functions of the Ethereum-powered financial ecosystem.
What’s Next
Through transaction infrastructure, a hefty ETH treasury, and rising brokerage revenue, the strategic alignment of Coinbase with Ethereum’s positive momentum supports its position as the top public Ethereum play. As ETH sustains positive momentum, Coinbase remains to be further in benefit. Investors will look forward to the next trading fee trends, market performance of ETH, and regulatory developments shaping Main Street and institutional crypto adoption.
Summary
Bernstein identifies Coinbase as the prime public proxy for Ethereum’s powerful rally, pointing to three reinforcing drivers: (1) Base sequencer economics tied to ETH-paid fees and high throughput, (2) platform activity across exchange, staking, and the Base App that scales with ETH volumes and spreads, and (3) a sizable ETH treasury that directly benefits from price appreciation. Together, these create multi‑channel operating leverage to ETH cycles, supporting Bernstein’s Outperform / $510 view.
From an investor lens, the setup blends cyclical tailwinds (ETH price/volume) with structural catalysts (on‑chain scaling via Base, product breadth, and tokenization flows). Key risks include regulatory outcomes for U.S. crypto markets, L2 competitive dynamics, and sensitivity to ETH volatility which could compress retail activity and spreads in a drawdown. Near term, watch ETH network usage, Base throughput/fees, and take‑rate trends in brokerage and staking to gauge durability of upside.
