Ethereum News Today: Coinbase Gains 4% on Bernstein Report Backing Ethereum Exposure

Cryptocurrency exchange Coinbase has emerged as a key player in the Ethereum ecosystem, with Bernstein — a Wall Street brokerage — estimating that the company generates an Ethereum-based revenue run rate of approximately $75 million annually, primarily through its Base Layer 2 scaling solution [1]. The report, released on Monday, maintains an outperform rating for Coinbase shares with a $510 price target, citing the firm’s broad exposure to Ethereum through multiple revenue streams [1].

According to the analysis, Coinbase’s Base chain processes over 9 million transactions daily across stablecoins, trading platforms, and consumer applications. Although Base does not have a native token, all gas fees are paid in Ether, allowing Coinbase to collect sequencer fees denominated in ETH [1]. This structure has created a consistent revenue stream from Ethereum activity, reinforcing the company’s strategic alignment with the blockchain’s growth.

The report also highlights that Coinbase has integrated all Base tokens directly into its primary exchange platform, which has significantly increased trading activity. This integration creates a positive feedback loop, as Base’s success drives more Ethereum-related brokerage fees for Coinbase’s core exchange business [1]. Additionally, the company has launched the Base App, a consumer-focused wallet that supports buying, selling, and transferring cryptocurrencies, further expanding its retail exposure to Ethereum-based transactions [1].

Coinbase’s corporate treasury also holds approximately 136,782 ETH, valued at $590 million, making it a direct beneficiary of Ether’s price appreciation [1]. The firm reported a 40% increase in trading fees during July compared to the second quarter average, which executives attributed largely to increased Ether trading activity [1].

Ether’s price has surged by 80% since June 5, driven by Circle’s public listing and growing recognition of Ethereum’s role in stablecoin minting. Most major stablecoins are built on Ethereum, creating sustained demand for the blockchain’s native token [1]. Bernstein analysts suggest that Ether’s recent outperformance may signal the beginning of a broader altcoin rally, which could benefit Coinbase through increased trading volumes and higher fees across its Ethereum-related services [1].

Following the report’s release, Coinbase shares rose by approximately 4%, reaching around $323 per share [1]. The firm’s diversified exposure to Ethereum’s growth — from direct treasury holdings to operational revenue from Base — positions it differently from other crypto companies with more limited blockchain ecosystem engagement [1].

Bernstein’s analysis underscores Coinbase’s unique standing among public companies in the cryptocurrency space, particularly in its ability to capitalize on Ethereum’s expanding use cases and infrastructure. With over 250 tokens listed on its platform, the exchange is well-positioned to benefit from the broader Ethereum ecosystem’s continued development [1].

Source: [1] Coinbase Emerges as Major Ethereum Player With $75M Revenue Run Rate, Bernstein Reports (https://coinmarketcap.com/community/articles/689ae2e1790b292b8ac6c138/)