Coinbase (COIN) stock price jumped to over $330– a three-year high – earlier this week, amid a broader boom in cryptocurrencies and stock markets fueled by the re-election of President-elect Donald Trump.

The dizzying rally, which peaked on Monday, also catapulted MicroStrategy (MSTR) stock to an all-time high. a record $351 per sharewhile Bitcoin exceeded $93,000surpassing its previous pre-election high of almost $20,000. Meanwhile, COIN shares climbed to $334, not far from the 2021 all-time high price of $357.

The record-breaking week for digital assets and crypto-related stocks has raised a crucial question for Coinbase investors: will COIN stock hit a new all-time high?

Experts said Decrypt that a new all-time high price for COIN is certainly a possibility amid booming crypto markets and optimism about more favorable US regulations to come, although it is still too early to tell. Meanwhile, Wall Street analysts on average expect COIN shares to remain well below their all-time high over the next year.

COIN’s average price target stands at $250.31 over a 12-month horizon, with a high forecast of $400 and a low forecast of $165, according to the stock research platform. TipRanks. Nine analysts have rated COIN stock a Buy, while eight have advised to Hold the company’s stock. Only one market expert recommends selling COIN.

The company’s stock is trading at $293 at the time of writing, up 49% from last month.

Ultimately, COIN’s ability to surpass its expected price target depends on a multitude of factors, two analysts said. Decrypt. Chief among them is whether President-elect Trump will respect his campaign promises fire Gary Gensler – if the SEC chairman doesn’t do it resign first– as well as protecting the right to self-custody crypto and limiting restrictions against Bitcoin mining operations in the United States, they said.

The company’s growth will also depend on its ability to maintain a strong hold on the U.S. market, even as competing trading platforms compete for its market share.

“(Coinbase CEO) Brian Armstrong has said he is committed to their U.S. operations,” said Patrick Moley, vice president and senior research analyst at Piper Sandler. Decrypt“and I think the change in sentiment in Washington should allow that to happen.”

Analysts are already seeing signs that the bull could continue to run for Coinbase after Trump returns to power.

Coinbase trading volume increased almost 400% to around $11 billion within 10 days of Trump’s re-election, CoinGecko data watch. According to analysts, this spike signals that a crypto retail boom may be underway.

The increased market activity could, in turn, make a lot of money for Coinbase, whose trading fees make up the majority of its revenue, said Oppenheimer & Co. senior analyst Owen Lau. Decrypt. And the potential for more favorable regulation of crypto assets could be behind some of this momentum.

“Trading volumes have increased a lot over the last few days, and part of that is due to these (altcoin) trades that people haven’t had the courage to touch over the last 12 months or so, because people fear that the SEC could do it. go after them,” Lau said. “What you see when we have this kind of pro-crypto environment… (is that) people are more willing to bet on all kinds of (tokens).”

But even though U.S. retail traders’ increased appetite for volatile cryptocurrencies is, on its face, a boon to Coinbase’s bottom line, these gains won’t come without challenges.

As more traders begin to dabble in crypto in the United States, a host of competing exchanges will likely attempt to enter Coinbase’s turf, potentially reducing the trading platform’s market share and profits , Moley said. Decrypt.

Coinbase’s market dominance has declined in recent months as smaller crypto-native exchanges encroach on its business, a September report from crypto research firm Kaiko shows. The trading platform’s market share fell to 41% in September, from around 54% last March, the data showed.

Coinbase also faces competition from TradFI exchanges that are adopting crypto amid this latest resurgence in the digital asset market.

Robinhood, which acquired Bitstamp last spring, is one such trading platform that is actively expand its crypto services and could pose a threat to Coinbase, Moley said. The stocks and crypto platform offers support for trading 19 tokens, in addition to staking for Solana And Ethereumhis website watch.

Still, Coinbase’s first-mover advantage over potential rivals could help the trading platform fend off TradFi rivals vying to eat into its U.S. market share.

“Other traditional financial players will enter the sector as regulations become clearer,” Moley said. “(But) new entrants have much less robust offerings than Coinbase.”

Ultimately, it’s still too early to tell how much any potential changes in U.S. crypto policy and regulation will boost U.S. trading, thereby benefiting Coinbase’s bottom line, Lau said. Decrypt.

“It’s just difficult to quantify the tangible benefit or incremental revenue benefit that Coinbase can achieve in the near term,” Lau said. “We see the volume in the short term, but the question becomes, can this be sustainable next year?”

Edited by Andrew Hayward