Coinbase Emerges as Top Ethereum Play as ETH Surges 80%, Bernstein Says

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Coinbase (NASDAQ: COIN) is rapidly becoming one of the biggest beneficiaries of Ethereum’s explosive growth, according to a new report from Wall Street brokerage Bernstein.

The firm maintains an “outperform” rating on Coinbase stock with a $510 price target, citing the company’s deep ties to Ethereum’s blockchain and its fast-growing Layer 2 network, Base.

Bernstein says Coinbase is set to benefit most as ETH climbs to multi-year highs and alt season begins. ETH strength is lifting trading volumes, staking revenue, and overall activity across the Ethereum ecosystem.

For @aave, this means higher lending demand can occur, more… pic.twitter.com/8JU40aKsWm
— darknight.eth (@darknight_ethh) August 12, 2025

Ethereum’s native token ETH has soared 80% since June 5, driven by a surge in stablecoin adoption — with most stablecoins minted on Ethereum — and the recent Circle (CRCL) listing. This rally has boosted trading volumes, network activity, and the market value of companies directly linked to Ethereum’s ecosystem.

Base Network Driving Ethereum and Coinbase Revenue

Bernstein’s analysts, led by Gautam Chhugani, pointed to the exchange’s Base network as a major growth engine. Base now processes over 9 million transactions daily, powering stablecoin payments, decentralized finance (DeFi) activity, and consumer-facing crypto applications.

While Base has no native token, all gas fees are paid in ETH, allowing Coinbase to earn sequencer fees directly in ETH. This revenue stream alone is generating an estimated $75 million annualized run rate.

The exchange has also made Base the dominant chain for new token launches by integrating every Base-launched token into its main trading platform, boosting ETH-denominated brokerage fees. The recent launch of the Base App, a consumer wallet for buying, selling, holding, and transferring crypto — including stablecoin payments — strengthens the exchange’s position even further.

Holding a token on Base?

Soon millions of Coinbase users will be able to hold it too.

Retail DEX just started rolling out access to all tokens on Base. https://t.co/riNVukrHw0
— Base (@base) August 8, 2025

Coinbase’s $590M Ethereum Treasury Offers Direct Exposure

Beyond its infrastructure role, the exchange directly benefits from ETH’s price appreciation through its large ether holdings. The company holds 136,782 ETH, valued at about $590 million.

This exposure, combined with strong trading performance, has fueled significant revenue growth. According to Coinbase’s Q2 earnings, July trading fees surged 40% above the second-quarter average, largely due to increased ETH trading activity.

Ethereum Rally Could Push Coinbase Stock Higher

With over 250 tokens listed, the firm is positioned at the heart of Ethereum’s ecosystem — benefiting from both increased on-chain activity and traditional exchange revenues. As ETH adoption accelerates and Base continues to lead Layer 2 innovation, Bernstein believes Coinbase could see substantial upside.

COIN price chart (Source: Google Finance)

At the time of writing, Coinbase shares were up 2.92%, trading around $319.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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