Shares of Coinbase (COIN) appear “de-risked” following a first-quarter selloff, with growing adoption of USDC, Coinbase’s primary stablecoin, boosting the outlook for the exchange and issuer Circle.
William Blair analysts Andrew Jeffrey and Adib Choudhury said their expectations for Coinbase have reset after COIN shares fell roughly 26% from their March highs, giving back gains from an earlier first-quarter rebound.
The analysts noted that weaker trading volumes and transaction revenue are already reflected in the stock, and that they’ve been below estimates for much of the year.
“We expect Street estimates to move lower … but this should not surprise investors,” they wrote, adding that soft first-quarter results are unlikely to have much effect on sentiment. Coinbase is expected to report its first-quarter 2026 earnings on May 7.
The firm also pointed to the exchange’s expanding “everything exchange” product suite, which includes derivatives, staking, and newer offerings such as equities trading and prediction markets, as bolstering its competitive edge.
A key piece of their bullish case is USDC growth, which the analysts said continues to gain market share from Tether’s USDT even as newer entrants like PayPal and Trump-linked World Liberty Financial carve out smaller positions.
Data from The Block supports that view, showing USDC now accounts for roughly 27% of the $300 billion stablecoin market, up from about 21% in 2024.
The note described Coinbase as offering a “call option” on further USDC commercialization, with its rising usage being mutually beneficial to Coinbase and Circle. Building on that, William Blair also struck a bullish tone on Circle, pointing to a “compelling” outlook as the company captures more value from growing stablecoin transaction activity and payments use cases.
The analysts also pushed back on projections that the crypto market could remain depressed over the next year or two, calling that scenario a “low-probability outcome” while arguing that Coinbase offers “asymmetric upside” if the market recovers.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
