JPMorgan (JPM), America's largest bank, said the Ethereum network and its token ETH (ETH) could be a notable contributor to the broader cryptocurrency ecosystem and a positive driver of Coinbase's (COIN) earnings.
JPMorgan, while maintaining its Neutral rating, raised its price target on Coinbase to $150 from $95 to reflect the rise in the cryptocurrency market and the positive impact ether has had on the exchange's revenue.
Coinbase shares fell more than 4% in pre-market trading to $223.
The cryptocurrency market focuses on Net new money The report noted the entry into exchange-traded funds (ETFs) for Bitcoin (BTC) and the positive impact on the price of Bitcoin, adding that it believes that “the impact of the rise in the value of ETH also has special meaning.”
“Ethereum's use cases go beyond the cryptocurrency ecosystem, and we believe it will create a strong near-term earnings driver for Coinbase,” analysts led by Kenneth Worthington wrote in a research report on Friday.
“We also see progress along the Ethereum roadmap, including… Dincon “The upgrade, which occurred this week on March 13, served as an impetus for the development of cryptocurrencies, which is positive in the long term,” the authors wrote.
The bank said Coinbase's long-term success will be driven by development, with a focus on tokenization and payments.
