BlockBeats news, August 11, Bernstein analysts stated that with the rise of ETH and the arrival of altseason, Coinbase will be the biggest beneficiary.
Analysts led by Gautam Chhugani pointed out in a report to clients on Monday that since the sensational IPO of stablecoin issuer Circle on June 5, ETH has risen by 80%, and investors' interest in the Ethereum ecosystem has grown as they realize that most stablecoins are issued on the Ethereum network.
Chhugani stated: "In cryptocurrency terms, this market structure is known as 'altseason rally', where digital assets other than Bitcoin rebound stronger relative to Bitcoin. We believe the altcoin rebound has started (recent strong performance of ETH has reflected this), and Coinbase will be the biggest beneficiary, as it has listed over 250 tokens, and the Coinbase App has integrated long-tail tokens on the Base chain."
Analysts noted that the Base chain processes more than 9 million transactions daily from various applications, with gas fees settled in ETH, resulting in Coinbase earning $75 million annually from sequencer fees. They stated that Coinbase also earns brokerage fees by integrating Base chain tokens on its trading platform and launching the Base App for cryptocurrency trading.
Analysts added that Coinbase's staking activities (primarily for ETH) account for 10% of the company's total revenue, so as asset prices rise, this income should also increase. They noted that Coinbase also holds a significant ETH reserve of 136,782 ETH (worth $570 million).
