BofA upgrades Coinbase after pullback, says crypto adoption still in ‘early innings’

Bank of America upgraded Coinbase stock (NASDAQ: COIN) to a “buy” rating, arguing that a sharp pullback in the stock has overshadowed product momentum and major expansion avenues in the exchange’s addressable market.

In a note published Thursday, BofA set a $340 price target on Coinbase shares, implying roughly 38% upside from current levels of roughly $245, according to The Block price data. The bank pointed out that the stock has fallen about 40% from its July highs of around $420, even as Coinbase increased product velocity and expanded into new markets, adding that tax-loss selling pressure from late 2025 appears to be fading.

Coinbase shares have become “significantly cheaper” following the pullback, while short interest has roughly doubled year-over-year — a setup BofA analysts said could amplify upside if sentiment shifts. Derivatives, stablecoins, and institutional infrastructure were cited as potential offsets to volatility in retail trading volumes.

Coinbase (COIN) price chart. Source: The Block/TradingView

BofA framed the upgrade around its view that crypto adoption remains in the “early innings,” positioning Coinbase as a long-term beneficiary as digital assets move deeper into mainstream finance. It pointed to Coinbase’s December product showcase, which outlined plans to roll out stock and ETF trading alongside crypto, expand prediction markets, and introduce equity-linked perpetuals outside the U.S.

Analysts also highlighted Coinbase’s Layer 2 blockchain, Base, as central to its longer-term infrastructure strategy. BofA said monetization tied to Base could become increasingly important as onchain activity grows, while Coinbase’s recently launched Tokenize platform could position the exchange to benefit if asset managers move more real-world assets onchain.

Bullish coverage

The upgrade adds to a growing wave of bullish analyst commentary on Coinbase.

William Blair recently reiterated an outperform rating, arguing that expansion beyond spot trading could support longer-term growth even as near-term volumes remain pressured.

Goldman Sachs also upgraded Coinbase to a buy this week, while warning that competition, execution risk, and interest-rate sensitivity could continue to weigh on margins in 2026.

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