Coinbase (NASDAQ: COIN), one of the world’s leading cryptocurrency exchanges, is experiencing a significant upswing in trading activity as digital asset prices hit new all-time highs. According to a recent note from Goldman Sachs, the surge in trading volumes is largely driven by heightened retail investor participation and growing momentum in the broader crypto market.
 

Goldman Sachs upgraded its rating of Coinbase stock from “Sell” to “Neutral” on Thursday, citing daily trading volumes that have climbed back to levels last witnessed in 2021 — the peak of the last major bull cycle. The analysts now estimate that Coinbase’s annual revenue could increase by 48%, with core earnings expected to grow by 114% in response to the revitalized market conditions.
 

“Our analysis suggests much of the recent price action has been driven by elevated retail participation — roughly 20% of trading volumes — which fundamentally come in at much more attractive take rates for Coinbase,” the analysts noted. However, they also acknowledged potential downward pressure on those take rates due to the rising usage of Coinbase’s Advanced Trade feature.
 

The crypto market has been on a remarkable rally. Earlier this week, Bitcoin reached a fresh record high, buoyed by consistent capital inflows into newly approved U.S. spot exchange-traded funds (ETFs) and mounting excitement around the upcoming Bitcoin halving — a programmed reduction in mining rewards that historically precedes major price surges.
 

Bitcoin’s price has skyrocketed more than fourfold from its November 2022 low of around $15,000, following the collapse of FTX. In 2023 alone, Bitcoin surged approximately 150%, laying the foundation for the current bull run.
 

As retail investors return and institutional flows continue to build, Coinbase appears well-positioned to capitalize on this renewed market enthusiasm — making the coming months critical for the platform’s growth trajectory.
 

— AccGn News Team