Coinbase stock plunges 16% in five days, but analysts see it as the best bet since Tesla five years ago

coinbase The stock has plunged 16% in the past five days due to a widespread market downturn, but cryptocurrency analyst Will Clemente believes the US cryptocurrency exchange is the best bet since Tesla five years ago.

“I think Coinbase is the biggest venture-style bet on the public markets since Tesla about five years ago,” Clemente said in a recent episode of Unchained Crypto. podcast.

He added that investors still see Coinbase as just an exchange platform, even though the company is actually transforming into a “cryptocurrency super app.”

Coinbase generates $30 million from growing native network

From an on-chain perspective, Coinbase’s Layer-2 network base has been thriving. In the past 30 days, the network has generated $30 million in revenue for Coinbase just from sequencer fees on the blockchain, Clemente said. This adds about $360 million in annual revenue, he continued.

Clemente believes that existing investors are currently overlooking all the on-chain activity taking place within the Coinbase ecosystem.

“People don’t even know what Base is and they don’t even estimate the potential of the tons of activity that happens there and the sequencer fees that Coinbase can profit from,” he said.

Since launch, the product has achieved:

– Over 132,000 addresses on board
– Completed tx exceeds 4.15 million.
– A total of 7.5 thousand contracts were distributed (mainly rugs, only 290 confirmed).
– Over 2300 tokens released (mainly lugs).

— Shual (@0xShual) March 31, 2024

Base has also been able to benefit from the recent investor frenzy surrounding meme coins, reaching a peak daily trading volume of $1.22 billion on March 30.

but trading volume Although it fell shortly thereafter in early April, Base still averaged $970 million in volume that week.

The increased activity on the network has made Base an attractive destination for meme coins, along with Brett (BRETT) and Degen (DEGEN), which are among the prominent brands with current market capitalizations of $541 million and $443 million, respectively.

The overall market capitalization of the Base network is $3.2 billion.

ARK Invest Sells Another COIN Stock

However, not everyone has an optimistic short-term outlook for COIN. Cathie Wood’s ARK Invest continues to offload its holdings from exchanges, despite being a major holder of COIN and believing in its long-term growth.

Recently, ARK sold 3,689 shares of COIN stock worth approximately $824,000. earlier, ARK made a profit At the time of the transaction, I ended up owning more COIN shares after the COIN stock price had surged 54% year-to-date.

Despite the recent decline, COIN stock is up 39% year to date and has surged 198% over the past six months.

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