Coinbase (COIN) shares have experienced a significant decline of 16% in the past five days, reflecting the overall volatility in both the cryptocurrency and stock markets. However, one analyst believes that investors might be missing out on a potential buying opportunity.
In a recent podcast on Unchained Crypto, crypto analyst Will Clemente stated, “The street isn’t really factoring in the revenue generated from native crypto assets, which many crypto enthusiasts understand.” Clemente further compared Coinbase to Tesla, claiming that it is the biggest venture-style bet in the public market since the electric car company.
According to Clemente, traditional investors still perceive Coinbase solely as an exchange, despite the company making several changes to its business structure over the last year. He emphasized Coinbase’s Ethereum layer-2 network, Base, which currently has a Total Value Locked (TVL) of $5.35 billion and facilitates 30.81 daily transactions per second. Clemente revealed that Base has generated $30 million in top-line revenue for Coinbase in the past 30 days, primarily through sequencer fees, which amounts to an annual revenue of approximately $360 million. He argued that traditional investors are overlooking the significant on-chain activity happening on Coinbase’s platform.
As of now, COIN is trading at $218.08, marking a nearly 16% decline in the past five days, according to data from Google Finance. Coinbase is expected to release its first-quarter earnings report for 2024 in the coming weeks.
During the same period, the S&P 500 has experienced a 3.12% decline, while Bitcoin (BTC) has seen a decrease of around 4.67%. Furthermore, both markets are anticipated to face further downside as geopolitical tensions escalate in the Middle East following reports of explosions at Isfahan airport in central Iran.
In related news, Cathie Wood’s ARK Invest has continued its selling spree of COIN shares. On April 15, it was reported that ARK sold 3,689 COIN shares, amounting to approximately $824,000. This comes just a month after ARK sold a substantial amount of the stock when its price had increased by approximately 54% year-to-date. On March 21, Cointelegraph reported that ARK sold 199,526 Coinbase shares from its exchange-traded funds.
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