• Exchange firm Coinbase can benefit from the crypto ecosystem in the long term.
• Goldman Sachs shares confidence in cryptocurrencies, even with its supposed fears.
Cryptocurrency exchange company Coinbase started a new public crypto exchange system. On Monday, this opening took place with a buy score, giving it a target value of 12 months for $306 per share. This would imply that each share could reach another 36% from its closing value last Friday.
Since trading operations on Monday afternoon, each share was at $226, having a difficult premiere for now in the public market. But analysts at Goldman Sachs think Coinbase has the best opportunity to expand into a native cryptocurrency ecosystem.
Although the ecosystem is still nascent and does not represent a large part of the Golman issue for the company, the change has been seen. The exchange firm has seen significant growth and the creation of technologies such as payments in fixed currencies. Innovations in DeFi, Apps for independent blockchains, and non-fungible tokens are part of these developments.
If the most critical parts of the economy can adopt Blockchain technology over time, Coinbase may benefit from it. Expert analysts believe that the exchange platform has a promising future ahead of it.
Goldman Sachs and its faith in Coinbase
Besides the role of the exchange firm in the Blockchain ecosystem, Goldman sees massive growth in transaction hikes. Goldman also predicts that investment growth will pay off in the short term for the business.
Like other analysts, the Goldman group clarifies that investors can be very focused on the value of the currencies traded. Ethereum and Bitcoin predominate on Coinbase. Gil Luria, an analyst at DA Davidson, notes that volatility in crypto drives the firm’s result.
Goldman rejects trade fees at exchange firms
Like other analysts, Goldman Sachs doesn’t see trading fees as the only long-term object in the game. The company clarifies that if 4% of the assets in the firm are from non-commercial activities, it believes that the subscription and income would exploit its potential. This measure includes loans with guarantees that will help companies to expand.
Even the Goldman report clarifies that while the core business delivers growth, they also see stable revenue drives. Goldman also considers the risks on the exchange firm. That includes regulation of crypto status, low volatility, and high commission rates.
Da Davidson’s analyst also notes that the value of the exchange firm may be linked to crypto success in the long term. This success will take place with the rise of cryptocurrencies when they reach their new all-time highs. It will be necessary only to wait for the exchange firm to trace its operations and show a clearer picture of its drawn-out path.