In the ever-evolving landscape of cryptocurrencies, the attention isn’t solely fixated on digital behemoths like Bitcoin and Ethereum; Coinbase, the largest cryptocurrency exchange in America, is carving out its narrative with a resurgent stock performance. Traded under the symbol COIN on the Nasdaq, Coinbase’s shares have reached heights not witnessed since the tumultuous events of May 2022, when the crypto project Terra experienced a significant crash.
Coinbase’s COIN experiences a massive rise
Presently, COIN is valued at $115.75 per share, showcasing an impressive surge of nearly 6% within the past day. On Friday, it briefly touched $117 per share, marking a noteworthy ascent. Over the preceding month, Coinbase’s stock has experienced a remarkable climb, surging over 41% from its position at $82 per share. This resurgence is particularly noteworthy for a company that has been publicly traded on the Nasdaq since 2021. The last time COIN reached this price level was in May 2022.
The stock touched the level just before the collapse of Terra, a crypto ecosystem that played a prominent role in the digital asset landscape. Terra, known for its apps primarily focused on algorithmic stablecoins, faced a devastating downfall that triggered a brutal bear market. The repercussions were felt across various crypto projects connected to Terra, leading to declarations of bankruptcy. The aftermath of Terra’s collapse left many digital coins and tokens, including Bitcoin and Ethereum, grappling to regain their pre-crash prices.
Cryptocurrencies and their effects on stock prices
The present scenario in the market signals a comeback. Bitcoin, the leading digital coin by market cap, recently surged past $38,000, while Ethereum approached the $2,131 mark on Friday. Coinbase’s recent success can be attributed, in part, to its increasing prominence as a custodian or surveillance-sharing partner for several high-profile Wall Street firms. Notable entities such as BlackRock, the world’s largest fund manager, and Fidelity have chosen Coinbase for their respective spot Bitcoin exchange-traded fund (ETF) applications.
The interest in Coinbase stems from its potential role in facilitating a Bitcoin ETF, a long-awaited investment product that could provide traditional investors with exposure to cryptocurrency. Such ETFs involve shares that track the price movements of the underlying digital asset. Presently, the U.S. Securities and Exchange Commission is in the process of reviewing multiple applications for Bitcoin ETFs. The selection of Coinbase by major financial players for their Bitcoin ETF ventures underscores the exchange’s growing influence and significance in the broader financial landscape.
As traditional finance increasingly intersects with the world of cryptocurrencies, Coinbase’s pivotal role in these ventures positions it as a linchpin for institutions seeking a secure and reputable gateway into the digital asset market. Coinbase’s resurgence in the stock market is not only a testament to its resilience but also indicative of the evolving dynamics within the cryptocurrency space. The renewed interest from Wall Street giants further solidifies Coinbase’s position as a key player facilitating the integration of traditional finance with the burgeoning world of digital assets.
Source: https://www.cryptopolitan.com/coinbases-stock-price-rises-18-month-high/