Bullish analysts predict strong growth for Coinbase over the next three years.
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In February, Coinbase wowed analysts and investors with a consensus-beating fourth-quarter report. But COIN stock is still down double digits this year as economic uncertainty takes hold in the U.S.
The leading crypto exchange has some good things going for it, including an expanding business model and a crypto-friendly U.S. president. Can Coinbase leverage these factors to rise up and pay handsome returns by 2028? Let’s review the company’s current state and analysts’ expectations to find out.
Coinbase’s History So Far
Coinbase stock listed on the Nasdaq as COIN in April 2021. The opening price was $381 per share. COIN rose to $429.54 during the first trading day but closed lower at $328.28.
Today, Coinbase trades for about $178. COIN stock had a rough 2022 as cryptocurrency prices fell, stifling trading activity. In December of that year, the share price had dropped as low as $31.83. The crypto exchange stock has since made a rocky climb back to the current trading price—which is about half its opening IPO value.
Coinbase And The Crypto Market
Coinbase revenues come from trading fees, subscriptions and services. The trading fee revenue grows and dips with crypto prices. Higher crypto prices encourage more revenue-generating transactions for Coinbase, while falling crypto prices do the opposite.
The subscription and service revenues are less volatile. The company has nearly tripled these revenues since 2022, but they accounted for just 37% of total sales in 2024.
Even with the rising subscription and services revenue, Coinbase stock price movements have roughly aligned with Bitcoin price trends. This makes sense: Bitcoin comprised 32% of Coinbase’s 2024 trading volume. So far in 2025, Bitcoin is down 12% and Coinbase is down 23%. Over the past six months, Bitcoin is up 42% and Coinbase is up 22%.
Bitcoin is the world’s largest cryptocurrency, with a market capitalization of nearly $2 trillion in 2025.
Catalysts That May Impact Coinbase Stock Over The Next 3 Years
Catalysts that could drive the Coinbase stock price higher or lower over the next three years include the performance of crypto, regulation and litigation trends, institutional trading volume and Coinbase’s expansion efforts.
Crypto Market Performance
Enthusiasm for crypto trading is good for Coinbase’s bottom line. There is a point at which this relationship backfires, however. Since going public, Coinbase has underperformed Bitcoin. This prompts an opportunity-cost question for investors bullish on Bitcoin: Invest in Bitcoin directly for potentially higher returns or invest in Coinbase stock? Either strategy includes exposure to Bitcoin’s downside.
That downside includes reactivity to economic news. In the immediate future, any signs of recession or inflation in the U.S. would be bad for crypto prices and Coinbase.
Longer term, the next Bitcoin halving will encourage Bitcoin appreciation, potentially pushing other cryptocurrencies higher also. Halvings reduce the rate at which new Bitcoins are minted. The last halving was in April 2024 and the next should happen in April 2028.
Regulations And Litigation
Many expect a light regulatory environment for crypto trading during President Trump’s second term. Trump has promised as much, according to an AP report. He’s also said he will establish a federal crypto reserve and make the U.S. a leader in crypto.
In February, the SEC dismissed a civil enforcement action against Coinbase. The 2023 case accused Coinbase of acting as an unregistered broker.
Institutional Adoption Trends
Coinbase has been developing its institutional platform for hedge funds, corporate investors and registered investment advisors. The platform, called Coinbase Prime, combines custody, staking, trading and financing features.
The launch of crypto ETFs in 2024 has fueled momentum in institutional crypto trading. Coinbase has benefitted. The company’s institutional transaction revenues rose to $345 million in 2024 from $90 million in 2023.
Coinbase expects further growth in institutional trading. According to the company’s 2023 Institutional Investor Digital Assets survey, 64% of crypto investors expect to increase allocations. More than half (57%) of those surveyed without crypto allocations believe they’ll allocate to digital currencies in the next three years.
Expansion Efforts
Coinbase has several expansion initiatives in process or recently completed:
- Adding features to the premium subscription service Coinbase One
- Launching Coinbase One Premium
- Expanding geographic availability of Coinbase One
- Expanding geographic availability of the Coinbase app
- Expanding derivatives offerings with the Coinbase 50 Index and margin loans
- Adding stablecoin rewards and incentives to drive adoption
Geographic and feature expansion efforts can attract new customers, improve the versatility of crypto assets and insulate Coinbase from competitors.
Investor Sentiment
Year to date, COIN is down 27%. As of March 14, the stock is also down over the last 30-day and five-day periods. Many investors are wary of the volatile tech sector, including crypto stocks, due to concern over President Trump’s tariff actions. COIN may not recover until the tariff decisions are final and investors understand the potential consequences.
Analyst Forecasts And Price Targets
Coinbase reported 2024 results on February 13, 2025. Since then, at least five analysts raised their COIN stock price targets. At least one analyst lowered the price target. The net effect is a consensus 12-month stock price prediction of $327.61. The lowest estimate is $185 and the highest is $475.
Average analyst EPS expectations indicate Coinbase’s EPS will shrink in 2025, grow moderately in 2026 and 2027 and increase nearly 70% in 2028.
Bull Case For Coinbase Stock In The Next 3 Years
Famous tech investor Cathie Wood is bullish on Bitcoin, which implies a positive outlook for Coinbase. Wood’s firm Ark Invest predicts Bitcoin will grow at a compound annual rate of 21% to 58% through 2030. That growth alongside a light regulatory environment should spur increased retail and institutional crypto investing.
Ark Invest has purchased more than $33 million of Coinbase stock in multiple transactions since the end of February. Wood favors fast-growing tech stocks. Her minimum return target is 15%.
Some analysts predict Coinbase will grow well beyond Wood’s minimum threshold. Investortrip.com says COIN stock will reach $1,600 by 2028, with extreme price swings along the way. That equates to a CAGR of 107%. Institutional trading platform Vstar has a more modest COIN price target outlook of $755 by 2030.
Bear Case For Coinbase Stock In The Next 3 Years
The downside prediction for COIN involves economic recession in the U.S. If inflation or unemployment rise, investors will likely trim their growth positions—which may include cryptocurrency and Coinbase stock. Coinbase could take a hit on two fronts. Earnings may suffer as crypto trading slows. And, Coinbase’s valuation may fall as investors lose faith in the business model amid tough crypto investing conditions.
Bottom Line
Bullish analysts predict strong growth for Coinbase over the next three years. The driver will primarily be a Bitcoin price surge that promotes retail and institutional trading.
Unfortunately, economic uncertainty or recession could easily derail or delay Coinbase’s growth trajectory. For that reason, COIN stock is not for the faint of heart. It is a suitable pick for investors bullish on bitcoin who aren’t planning on initiating or adding to their Bitcoin positions. If that doesn’t describe you, see best stocks for 2025 for more suitable investing ideas.
