Oppenheimer, a New York-based financial firm, has revised Coinbase’s share price target to $276, marking a notable increase from the previous target of $200, while maintaining its buy rating.

The new price target of $276 represents a roughly 10% surge from Wednesday’s closing share price of Coinbase, which stood at $251.58.

Owen Lau, Executive Director at Oppenheimer, highlighted the ongoing adoption of digital assets, particularly following the approval of spot bitcoin ETFs in January. Lau projected a significant increase in Coinbase’s 1Q24 trading volume, estimating a 95% quarter-on-quarter and 107% year-on-year rise to $300 billion.

Additionally, Lau pointed out the growing liquidity in the space, with USDC’s market capitalization witnessing a 12% uptick between the first quarter of 2024 and the last quarter of 2023.

According to Oppenheimer, the sustained adoption of digital assets and blockchain technology positions Coinbase as a key beneficiary in the cryptocurrency sector over the long term.

Lau emphasized that the upward revision of the price target for Coinbase shares reflects the company’s improved fundamentals and higher trading revenue. Factors such as strong inflows into spot bitcoin ETFs, the halving, and increased retail participation contribute to this growth. However, Lau noted that Coinbase’s Base Layer 2 wasn’t a significant revenue driver factored into the increased target price for the stock.

In pre-market trading on Thursday, Coinbase shares surged by 3.29% to $259.85 as of 8:56 a.m. ET. Since the beginning of the year, the cryptocurrency exchange’s share price has climbed more than 44%.

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PayPal has unveiled a new service allowing its U.S. clients to conduct cross-border money transfers utilizing the company’s PYUSD stablecoin.

Commencing Thursday, users of the company’s international payments service, Xoom, based in the U.S., can convert PYUSD to USD and subsequently send funds to “recipients in approximately 160 countries” without incurring transaction fees, PayPal stated.

Silicon Valley-based payments behemoth PayPal is once again expanding the utility of its PYUSD stablecoin, aiming to facilitate more efficient international transactions.

The move signifies PayPal’s confidence in the market’s appetite for more cost-effective methods of sending international money transfers. Referencing a World Bank report, PayPal noted that the “global average cost of sending $200 is just over 6%.”

In addition to promoting the use of its stablecoin, launched last year, PayPal aims to establish itself as a reputable entity in the realm of digital assets, aligning with the evolving landscape of cryptocurrency adoption worldwide.

Jose Fernandez da Ponte, PayPal’s Senior Vice President of the blockchain, cryptocurrency, and digital currency group, emphasized the significance of enabling U.S. Xoom users to fund cross-border money transfers using PYUSD, furthering the company’s objective of mainstream cryptocurrency adoption.

Amid PayPal’s announcement, the stablecoin market appears to be gaining momentum. Ripple recently disclosed its plans to introduce a stablecoin primarily targeting enterprise clients, foreseeing the stablecoin market potentially reaching $2.8 trillion by 2028.

Presently, Tether’s USDT and Circle’s USDC stablecoins dominate the market in terms of supply, according to data from The Block Data Dashboard.

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Ethena Labs has announced the addition of bitcoin as a backing asset for its USDe synthetic dollar, tapping into the growing enthusiasm for the world’s oldest digital asset among traders.

The decentralized finance (DeFi) protocol stated in a series of updates that anchoring USDe with Bitcoin will facilitate significant scalability, multiplying its capacity by more than 2.5 times and enhancing safety measures for traders. This strategic move arrives as bitcoin derivative markets outshine their ether-based counterparts.

“With Ethena’s scaling trajectory nearing $10 billion, this enhanced backing provides a more resilient foundation, ensuring a safer environment for users,” the protocol remarked, noting that the current supply of USDe is valued at around $2 billion.

Ethena also highlighted Bitcoin’s superior liquidity and duration profile for delta hedging compared to liquid staking tokens as a key factor in the decision to incorporate it as a backing asset.

Previously, USDe was solely supported by staked ether (ETH), as indicated on Ethena Labs’ website. However, heightened trader interest in Bitcoin prompted the protocol’s adjustment.

Ethena noted a substantial surge in bitcoin open interest, which soared by 150% to reach $25 billion over the past year, leading to more than doubling USDe’s scalability potential. In contrast, ether’s open interest grew by 100% to $10 billion during the same period, according to data provided by the protocol.

Bitcoin’s robust demand coincides with its remarkable surge in speculative value, currently trading at $68,384 according to The Block’s price data, marking a 4% increase over the past 24 hours.

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Coinbase has announced securing a restricted dealer license in Canada, marking a significant milestone for the U.S.-based exchange. This makes Coinbase the first and largest international cryptocurrency exchange to be registered in the country.

Having officially launched in Canada nearly eight months ago, Coinbase’s latest announcement of securing registration as a restricted dealer underscores its commitment to expanding its presence in global markets outside the United States. This move aligns with Coinbase’s strategy amidst challenges it has faced in its home market, including regulatory scrutiny from the Securities and Exchange Commission.

Expressing enthusiasm about obtaining the restricted dealer license, Coinbase highlighted its collaboration with Canadian banks, investment advisors, and pension funds. The company emphasized its dedication to facilitating the successful navigation of the evolving digital asset landscape for these entities.

Coinbase’s efforts in Canada have been bolstered by the appointment of a country director approximately a year ago. Additionally, the exchange cited a study it contributed to, revealing that nearly one-third of Canadians would be more inclined to purchase cryptocurrency if there were more regulatory measures in place.

As of late last year, WonderFi held control over almost half of all regulated exchanges operating in Canada, reflecting the growing interest and participation in the cryptocurrency market within the country.

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Bitcoin Cash witnessed a significant surge, jumping over 10% in value after the completion of its blockchain’s halving process. The digital currency has been steadily climbing since the beginning of the year, with a notable 23% increase over the past week and an impressive 43% surge in the last month, as reported by CryptoSlate.

At the time of reporting, BCH was trading at $673, marking its highest level since May 2021. Market analysts attribute this surge to various factors, including the recent halving event and the prevailing bullish market sentiment.

Bitcoin Cash Halving

Bitcoin Cash, a proof-of-work blockchain network that forked from Bitcoin in 2017, aims to facilitate faster and cheaper transactions but has seen limited adoption in the crypto community. The recent halving, occurring at block height 840,000, reduced miner rewards from 6.25 BCH to 3.125 BCH per block.

Following the halving, Bitcoin Unlimited data indicates that the network has confirmed 840,017 blocks, with approximately 17 blocks validated since the event. Moreover, OKLink data shows a spike in BCH’s network mining difficulty to its highest level since 2019 at 761,589.2, while miner rewards have decreased from an average of 0.0003 to 0.00017 at the time of reporting.

Potential Implications for Bitcoin

Market experts view Bitcoin Cash’s halving as a potential precursor to Bitcoin’s upcoming halving, scheduled for April 20. During this event, Bitcoin’s miner block rewards will be halved from 6.25 BTC to 3.125 BTC.

Notably, industry players such as asset management firm Grayscale and Hut 8 Mining CEO Asher Genoot have highlighted the significant impact this upcoming halving event may have on the broader cryptocurrency landscape.

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