Coinbase’s Base Token Could Unlock a $34 Billion Opportunity, JPMorgan Says

By CoinEpigraph Editorial Desk | October 24, 2025

A new JPMorgan analysis positions Coinbase’s Base network as a sleeper asset that could redefine the exchange’s business model — and the economics of Layer-2 blockchains.

JPMorgan has raised eyebrows across Wall Street and crypto markets alike with a bold forecast: Coinbase’s yet-to-launch Base token could eventually be worth between $12 billion and $34 billion. The projection comes as part of an upgraded outlook for Coinbase Global Inc. (NASDAQ: COIN), with the bank shifting its rating from Neutral to Overweight and lifting its price target to roughly $404 per share.

At the heart of the bullish call is a growing conviction that Coinbase is no longer just an exchange — it’s morphing into a full-stack Web3 infrastructure company. JPMorgan’s analysis suggests that if Coinbase successfully issues and integrates a native Base token into its Layer-2 network, it could capture a lucrative share of transaction fees, developer activity, and on-chain finance revenues.

From Exchange to Ecosystem

Base — a Layer-2 blockchain built on the OP Stack in partnership with Optimism — has rapidly become one of the most active scaling networks on Ethereum. Since its 2023 launch, Base has processed hundreds of millions of transactions and hosts a vibrant DeFi and NFT ecosystem.

For Coinbase, the network is more than a technical experiment; it’s a strategic pivot. Transaction fees from spot trading have declined industry-wide, pressuring margins and forcing exchanges to diversify. By positioning Base as a settlement and app-development layer, Coinbase gains new monetisation channels: sequencer fees, on-chain data services, and potentially, direct token economics.

JPMorgan’s team views this as a “second-generation monetisation model,” where infrastructure participation replaces pure trading volume as the company’s growth engine. The firm’s report notes that Base could eventually contribute “billions in equity-equivalent value” through network activity alone.

The $34 Billion Thesis

The valuation range — $12 billion to $34 billion — derives from comparing Base’s potential adoption curve to other successful Layer-2s such as Arbitrum and Optimism. Coinbase’s brand reach and retail distribution power could accelerate network uptake, creating a higher ceiling for token value capture.

Assuming Coinbase retains a 35 %–40 % ownership stake in the Base token supply, JPMorgan estimates this could translate into $4 billion–$12 billion in additional value directly attributable to the company. Combined with improving macro conditions and stablecoin yields, this could materially reshape Coinbase’s earnings profile.

Coinbase has not yet confirmed whether or when a Base token will be issued, but hints abound. In public developer channels, the team has referenced a “future decentralisation roadmap.” The term implies that governance — and eventually token issuance — will shift away from full Coinbase control toward community mechanisms.

Strategic Significance

For institutional investors, JPMorgan’s thesis reframes Coinbase as a dual-asset enterprise: one part regulated exchange, one part protocol builder. This blend could allow it to participate in Layer-2 economics without the same risk profile faced by independent crypto startups.

For the broader ecosystem, a Base token launch would also send a signal: that traditional, publicly-listed companies can integrate blockchain tokens as part of legitimate corporate structure and shareholder value creation. If successful, the move could nudge other large fintechs to tokenize their own infrastructure layers.

However, the path is far from risk-free. U.S. regulators continue to scrutinize token launches, and Coinbase’s leadership has repeatedly stated it intends to remain compliant under the Securities and Exchange Commission’s oversight. Any Base token issuance would need to navigate delicate legal terrain — potentially limiting speed or scope.

Competitive Context

Coinbase enters a crowded Layer-2 arena. Arbitrum remains the most active L2 by total value locked (TVL), followed closely by Optimism and zkSync. Yet Base’s advantage lies in its retail funnel: the millions of users already transacting on Coinbase’s centralized exchange. By bridging those customers directly onto Base, Coinbase could drive mainstream adoption faster than most competitors.

Market analysts see this as a “network effect accelerator.” Developers gain access to a pre-existing user base; users experience lower fees and smoother on-chain experiences — a feedback loop that could power exponential growth once token incentives are introduced.

What Comes Next

JPMorgan’s upgrade also reflects improving sentiment toward the broader crypto market, which has stabilized after a turbulent 2024. With Bitcoin hovering above $90,000 and Ethereum resurgent on new ETF inflows, investor appetite for infrastructure plays is rising.

If Coinbase executes effectively, the Base token could emerge as one of the most consequential corporate-linked crypto assets since Binance’s BNB. For now, markets are watching for signals — smart-contract activity, governance testnets, or SEC filings that hint at the roadmap ahead.

👉 “The CoinEpigraph Bottom Line”

JPMorgan’s $34 billion projection for Coinbase’s Base token is speculative but significant. It underscores how traditional finance now values blockchain networks not merely as technology, but as cash-flow assets. For Coinbase, that shift could transform it from a trading venue into a full-fledged infrastructure powerhouse — and potentially, the first publicly traded Layer-2 economy.

At Coinepigraph, we pride ourselves on delivering cryptocurrency news with the utmost journalistic integrity and professionalism. Our dedicated team is committed to providing accurate, insightful, and unbiased reporting to keep you informed in the ever-evolving crypto landscape. Stay tuned as we expand our coverage to include new sections and thought-provoking op-eds, ensuring Coinepigraph remains your trusted source for all things crypto. -Ian Mayzberg Editor-in-Chief

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