JPMorgan Chase: Coinbase could unlock $34 billion in value if it launches Base token

According to The Block, JPMorgan analysts suggest that Coinbase could unlock up to $34 billion in value if it eventually launches its Base network token.

The bank also highlighted Coinbase's recent adjustments to its USDC rewards mechanism and the integration of a new DEX aggregator into Base as key levers for increasing profits and optimizing risk management.

In a report released Friday, JPMorgan's equity research team upgraded Coinbase's rating and raised its December 2026 price target to $404.

The report argues that as the company furthers its involvement in the Layer 2 ecosystem and the stablecoin economy, "profit opportunities are emerging and risks are gradually decreasing." JPMorgan noted that the Base token is expected to "fairly reflect" the success of Coinbase's Ethereum-based Layer 2 network. Based on current network activity and "generous token economic incentives," the bank predicts that Coinbase's market capitalization could gradually reach $12 billion to $34 billion. If Coinbase retains 40% of the token supply, its corresponding equity value would be approximately $4 billion to $12 billion.

JPMorgan Chase also notes that Coinbase's USDC yield program could potentially serve as a lever for profit growth. Currently, Coinbase returns the majority of the interest earned on its USDC reserves from Circle (approximately $400 million annually) to users as rewards.

However, analysts revealed that Coinbase is considering limiting this benefit to Coinbase One subscribers only. Once regular users no longer receive USDC yields, Coinbase could retain approximately $374 million annually and reallocate it to other business segments.

Finally, the report also noted Coinbase's strategic move to integrate a DEX aggregator into the Base app, viewing it as a hedge against the growing market share of decentralized exchanges (DEXs). DEXs currently account for approximately 25% of total cryptocurrency spot trading volume.