Berenstein: Coinbase Will Be the Biggest Beneficiary of ETH's Rise, Altseason Has Begun

On August 11th, Bernstein analysts declared that as ETH rose and the altcoin season arrived, Coinbase would become the greatest beneficiary. Led by Gautam Chhugani, the analysts pointed out in a report to clients on Monday that since the remarkable IPO of the stablecoin issuer Circle on June 5th, ETH has increased by 80%. With the awareness that most stablecoins are issued on the Ethereum network, investor interest in the Ethereum ecosystem is expanding. Chhugani stated: "In cryptocurrency terms, this market structure is referred to as an 'altcoin season rally,' where digital assets other than Bitcoin exhibit a stronger rebound compared to Bitcoin. We believe that the altcoin rebound has already commenced (the recent outstanding performance of ETH has already reflected this), and Coinbase will be the biggest beneficiary as it has listed more than 250 tokens and integrated Base Layer 1 tokens into the Coinbase App." The analysts pointed out that Base Layer 1 processes more than 9 million transactions per day from various applications, with Gas fees settled in ETH, resulting in Coinbase earning $75 million in sequencer fees annually. They stated that Coinbase also earns brokerage fees by integrating Base Layer 1 tokens on its trading platform and launching the Base App for cryptocurrency trading. The analysts further noted that Coinbase's staking activities (mainly for ETH) account for 10% of the company's total revenue. Therefore, as asset prices rise, this revenue is expected to increase as well. They pointed out that Coinbase also holds a huge ETH reserve of 136,782 ETH (worth $570 million).