• The exchange benefits from higher crypto prices.
  • Retail participation has driven recent cryptocurrency price movements.
  • The daily volume of the exchange has reached levels not seen since 2021’s bull market.

BTC Price Index and Live Chart – CoinDesk”>(BTC) hit a record high and daily trading volumes hit levels not seen since 2021, according to a report published Thursday.

Bank also raised its price target from $170 to $282. Coinbase shares traded at $242.10 during premarket trading.

Analysts led by Will Nance wrote: “While we see limited use cases for crypto at the moment, the beta to the price movement has outweighed any alpha that comes from the fact that retail adoption is not increasing over time.”

Goldman attributes this year’s stock price increase to both the huge jump in crypto prices and the “company’s commitment to managing toward more consistent profitability over the long term.”

Data shows Coinbase’s daily volume in the range of $3 billion to $5 million. The bank’s analysis shows this is largely due to increased retail participation. “They fundamentally come in with much more attractive rates for COIN.”

The report said that the exchange had seen “fundamental benefits” from “increasing the price on the simple platform while maintaining market shares, a renewed dedication to greater expense management and profitability in any market environment, and tailwinds due to higher interest rates, as a result COIN’s 50 percent revenue share on interest income earned on USDC reserves,” it added.

Read more: JPMorgan Analyst Criticizes Coinbase’s Lack of Insights into Its ETF business

Sheldon Reback is the editor.