Why Is Coinbase Stock Soaring—Could COIN Stock's Lofty Target Signal a Crypto Boom?

Coinbase Global (COIN) has seen its stock surge 40% in June 2025, outpacing the S&P 500's 3% gain, driven by a favorable crypto regulatory environment and its partnership with stablecoin issuer Circle Internet Group.

With analysts like Bernstein raising COIN's price target to £408 ($559), implying a 48% upside, investors are buzzing about whether this signals a broader cryptocurrency boom.

Fueled by the Senate's passage of the GENIUS Act and Circle's blockbuster IPO, here's why Coinbase is soaring and what it means for the £1.6 trillion ($2.1 trillion) crypto market.

Capitalise on Stablecoin Momentum

Coinbase's partnership with Circle, issuer of the USDC stablecoin, is a key driver of its rally. Circle's stock (CRCL) skyrocketed 750% since its 5 June 2025 IPO, climbing from £24.80 ($33.98) to £210.76 ($288.75), fueled by the GENIUS Act's passage, which boosts stablecoin regulatory clarity.

Investor's Business Daily noted on 24 June 2025 that Coinbase earns 15% of its revenue—roughly £240 million ($328 million) in Q1 2025, from USDC, sharing half its interest income with Circle.

Posts on X highlight Coinbase's role as a 'one-stop Amazon of crypto services' for crypto, with @CryptosR_Us calling it a 'one-stop Amazon' for trading and stablecoin services.

This stablecoin revenue, less volatile than trading fees, positions Coinbase to benefit from USDC's £48.8 billion ($66.8 billion) market cap, projected to hit £400 billion ($500 billion) by 2026.

Ride Favorable Regulatory Tailwinds

The Senate's approval of the GENIUS Act, requiring stablecoins to be backed by liquid assets like US dollars, has bolstered investor confidence in regulated crypto firms like Coinbase.

Yahoo Finance reported on 20 June 2025 that the act could drive the stablecoin market to £1.6 trillion ($2.1 trillion) long-term, up from £208 billion ($285 billion) today.

Coinbase's compliance with US regulations, including its MiCA approval in Europe, enhances its appeal as a trusted platform.

Bernstein's Gautam Chhugani, cited by CNBC, called Coinbase 'the most misunderstood' crypto company, emphasizing its role in powering eight of 11 Bitcoin ETFs and handling £22 trillion ($30.1 trillion) in 2024 stablecoin transactions, surpassing Visa and Mastercard combined.

On X, @aixbt_agent praised Coinbase's 'backend rails' for 200+ regulated entities, signaling institutional trust.

Expand Beyond Trading Revenue

Coinbase's diversification into payments, custody, and institutional services fuels its growth.

Its Coinbase Payments product, integrated with Shopify, leverages USDC for low-cost transactions, while its acquisition of Deribit, the largest crypto options exchange, strengthens its institutional offerings.

Nasdaq noted on 25 June 2025 that stablecoin revenue diversifies Coinbase's income, offsetting volatile trading fees. With a 'sparkling clean' balance sheet and a £76 billion ($104 billion) market cap—still below @ZaStocks' projected £80 billion ($100 billion) on X, Coinbase is poised for growth.

However, risks remain: Tether's 60% stablecoin market share and potential regulatory shifts could challenge margins, per MK.

Seize the Crypto Renaissance

Coinbase's 40% stock surge in June 2025, backed by a £408 ($559) price target, reflects its pivotal role in a maturing crypto market.

The GENIUS Act and Circle's IPO have ignited optimism, with Coinbase's stablecoin revenue and diversified services driving growth.

While competition from Tether and regulatory risks loom, its infrastructure, powering ETFs, payments, and institutional trading, positions it as a crypto leader.

As the £1.6 trillion ($2.1 trillion) crypto market expands, Coinbase's rally could herald a broader boom, but investors must stay sharp to navigate volatility.

The future looks bright, yet vigilance is key, Coinbase is riding high, but the crypto wave demands steady hands.