JPMorgan has flipped bullish on Coinbase — and the reason isn’t trading volume, ETFs, or Bitcoin. The bank now believes Coinbase’s Base network could represent a $34 billion opportunity, calling the Layer-2 ecosystem a potential breakout revenue machine for the company.
This marks one of the strongest signals yet that Wall Street is finally taking Web3 infrastructure seriously, not just crypto prices.
Base: The “Hidden Engine” Behind Coinbase’s Future
According to JPMorgan’s note, Base could become a massive fee-driven ecosystem, earning revenue from:
- on-chain transactions,
- developer activity,
- DeFi and app expansion,
- and future tokenized markets.
In other words, Coinbase could profit even when markets are flat, as long as Base keeps growing.
JPMorgan’s thesis centers on one core belief: Web3 will reward the platforms that own the rails, not just the traffic. Base, as a Coinbase-controlled Layer-2, puts the company in a position to earn recurring fees from every transaction, every app, and every on-chain product built inside its ecosystem.
Unlike Coinbase’s exchange business — which rises and falls with market cycles — Base represents ongoing, compounding network revenue. And in an environment where developers are fleeing expensive Layer-1 chains for cheaper alternatives, Base’s low-cost model gives Coinbase a powerful competitive edge.
If Coinbase moves from “exchange revenue” to “infrastructure revenue,” its business becomes:
- more scalable,
- more predictable,
- and much more valuable.
And that’s exactly what JPMorgan is betting on.