Coinbase’s share price nears its March high as the crypto exchange publishes a report on web3 projects.
A new report by crypto exchange Coinbase reports that Fortune 100 companies have increased their web3 projects by 39% compared to the previous year, reaching a record high in the first quarter (Q1) of 2024. This suggests major corporations are rapidly adopting and exploring the potential of web3 technology.
Web3 refers to a conceptual next phase of the internet built on blockchain technology that incorporates concepts such as decentralization, token-based economics, and decentralized autonomous organizations.
According to the report, 56% of Fortune 500 business executives surveyed say their companies are developing blockchain-based initiatives involving consumer-facing payment apps. This indicates web3 and blockchain technology have gained significant corporate interest and investment across multiple industries.
Areas driving demand for web3 projects include bitcoin spot exchange-traded funds, real-world asset tokenization using blockchain technology, and stablecoins (cryptocurrencies pegged to reserve assets like the US dollar).
However, the US has lost developer talent and expertise in the crypto/web3 space, with only 26% of developers now based in the US, down from previous years. This may impact future US competitiveness and innovation in the web3 sector.
The article also mentions that Coinbase has urged regulators like the SEC to provide clearer guidelines on crypto/web3 regulation to support industry growth and innovation.
In summary, web3 is gaining substantial corporate attention and investment, with payments, asset tokenization, and stablecoins being key early areas of interest and development.
Coinbase analyst ratings
LSEG Data & Analytics data shows a consensus analyst rating of between a ‘buy’ and ‘hold’ for Coinbase – 5 strong buy, 6 buy, 14 hold and 2 sell (as of 13 June 2024).
