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Coinbase Has First Mover Advantage In A Crypto Ecosystem Set For 'Substantial Innovation:' JMP

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Coinbase Has First Mover Advantage In A Crypto Ecosystem Set For 'Substantial Innovation:' JMP

Ahead of its highly anticipated direct listing, Coinbase Global Inc. (NASDAQ: COIN) reported its first-quarter earnings. The company received some updated commentary from JMP Securities and analyst Devin Ryan on Wednesday.

Coinbase Earnings: The company has been scaling at an impressive pace, Ryan said. Coinbase reported year-over-year revenue growth of more than 800% in the first quarter.

Coinbase reported 56 million verified users globally as of the end of the first quarter. In the first quarter, the company had 6.1 million monthly transacting users, compared to 2.8 million at the end of 2020.

Coinbase has more than 11% market share of the entire cryptocurrency market capitalization, with $223 billion in customer assets.

First-quarter revenue of $7.2 billion greatly outpaced the entire 2020 total of $1.3 billion.

See also: How to Buy Coinbase IPO (COIN) Stock

Ryan noted that the "entire DeFi ecosystem has enjoyed tremendous growth over the past year" and Coinbase stands to be among major beneficiaries.

Ryan highlights Coinbase as a leader in the ecosystem and its market share growth. Revenue is up over 2,600% in the last two years and verified users are up 107% in the same time period.

Related Link: Coinbase IPO: 7 Key Takeaways Investors Should Know

What’s Next: Coinbase is set for a direct listing on April 14.

The company is in the “relatively early innings” of building a cryptocurrency ecosystem for retail users and institutions, according to Ryan.

“While Coinbase is benefitting from its first mover advantage, it does not appear complacent as the offering is seemingly evolving toward a more holistic platform to serve users across broader crypto needs well beyond just trading,” Ryan said.

The analyst expects further innovation in the crypto space with Coinbase playing an important role in the market.

Coinbase having 56 million verified users is “a great starting point,” as per Ryan. Coinbase has an addressable market size of 3.5 billion people globally with mobile phones and institutions that oversees tens of trillions of dollars in capital.

Coinbase is guiding for 4 million to 7 million monthly transacting users for fiscal 2021.

Photo: Courtesy of Coinbase

 

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