While not in its infancy anymore, it is still early days for the cryptocurrency space. Yet, it is expanding at a fast clip, with the established leaders looking to further expand and cement their position yet faced with the ongoing challenge of fending off rising competition and new entrants.
The cryptocurrency trading venue landscape has been dominated by Coinbase (COIN). While recent data has shown that platforms such as Kraken and Gemini might be losing ground, it seems like the leading exchange might now have a serious competitor to deal with, according to Raymond James’ Patrick O'Shaughnessy.
“Crypto.com has been making meaningful inroads against Coinbase’s market leading position, and, in fact, in January 2022 became the largest U.S. exchange by volumes,” the 5-star analyst noted.
Data from Nomics shows that during the year’s first month, Crypto.com’s volumes amounted to 107% of Coinbase’s volumes. This is the “culmination” of a huge growth spurt that began halfway through last year when Crypto.com volume was just ~5-7% of the “incumbent leader.”
Basically, the charge for dominance has evolved into a two-horse race with the 2 platforms generating over 80% of volumes of the top U.S. venues.
The dual supremacy is reflected in the app download front too. According to Sensor Tower data, both take the leading position within the crypto space.
Coinbase has mostly been leading here for the past year+, although Crypto.com’s momentum was reflected in November and December downloads when it took a modest lead.
That said, earlier this year, Crypto.com experienced a well publicized $30 million loss on account of a hack, following which, Coinbase regained the top download spot in January.
To sum up, the rising competition might help confirm O'Shaughnessy’s negative take. The analyst is currently the Street’s only COIN bear, sticking with an Underperform (i.e. Sell) rating. (To watch O'Shaughnessy’s track record, click here)
The rest of the Street, however, is almost unanimously bullish; barring 1 additional Hold, all 13 other recent reviews are positive, allowing for a Strong Buy consensus rating. Moreover, the average price target is resolutely optimistic; the figure clocks in at $384 and change, suggesting room for ~98% growth over the one-year timeframe. (See Coinbase stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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