Photograph by Block Inc.
Key points
- Block Inc. has surpassed Coinbase in market cap for the first time since March.
- Barclays adjusts its rating on Coinbase from Under Weight to Equal Weight.
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Block, Inc., the company behind Square and other fintech firms, has surpassed Coinbase in market capitalization for the first time since March. This change comes as Coinbase shares fell amid falling cryptocurrency prices, marking its worst week of the year so far.
The shift in market cap positioning reflects broader volatility in the cryptocurrency sector. Coinbase had previously surpassed Block Inc. in market cap earlier this year, but recent market moves have reversed this trend.
Diversification and maturation of the regulatory environment
Despite the stock’s decline, investment bank Barclays adjusted its stance on Coinbase from Under Weight to Equal Weight. Analysts cited a mature regulatory environment, consistent diversification, and strong industry leadership as factors indicating the business’s maturity with reliable revenues. However, Barclays also revised its price forecast for Coinbase shares downward from $169 to $206.
Coinbase’s stock performance has been turbulent, hitting a yearly high of $279.71 on March 25 before closing at $147.35 on Friday. In early August, Coinbase followed in the footsteps of MicroStrategy Between 15 and 18% less than in the previous market as global markets reacted to disappointing US economic data and rising tensions in the Middle East.
The company recently scored a minor legal victory when a New York judge ordered the SEC to grant Coinbase access to certain documents related to ongoing litigation. However, the exchange’s attempt to subpoena SEC Chairman Gary Gensler was unsuccessful.
The firm has also recently urged the SEC to retract the language of its Rules on decentralized exchangescalling these actions irrational. In August, Coinbase hinted at the launch of a possible Wrapped Bitcoin product that could potentially reshape the decentralized finance market, introducing a major player like the company.
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