The non-fungible token (NFT) space has taken off over the past year with unique crypto assets generating an explosion in creative and trading activity.
According to decentralized application and NFT marketplace data tracker DappRadar, 3Q21 trading volume in the NFT space reached $10.67 billion, amounting to a 704% sequential increase from 2Q21 and an amazing 38,060% year-over-year uptick.
While Coinbase (COIN) has been a trailblazer in the crypto apace and with its April IPO became the first major digital asset exchange to go public, it has not ventured into the lucrative NFT market… until now.
Last week, the company announced that later this year it will launch Coinbase NFT, a peer-to-peer NFT marketplace. The news was greeted with widespread excitement, and on the same day, more than 1 million people signed up for the waiting list, which has already grown significantly since.
Such a reaction is not surprising to JMP’s Devin Ryan, who applauds the move.
“We believe Coinbase NFT is a logical extension of the company’s business model and considering the amount of interest in the platform already, we see tremendous opportunity,” the 5-star analyst opined.
But maybe even more significantly, says Ryan, Coinbase’ latest move emphasizes the company’s ability to “leverage its unique scale, resources, and experience to move into emerging areas of the crypto economy as the company innovates and evolves its business model.”
Ryan sees a “compelling value proposition in COIN shares,” and expects the company to keep on diversifying its revenue streams “well beyond what the market is currently modeling,” anticipating the future will hold an abundance of similar announcements. Based on the current market, the analyst believes this new business could “reasonably quickly scale into the hundreds of millions of dollars.”
And while the opportunity is not yet factored into Ryan’s model, it does lead to a new price target; the figure moves from $300 to $330. No need to add, Ryan’s Market Outperform (i.e., Buy) rating stays as is. (See Coinbase stock analysis on TipRanks)
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