The crypto market is slowly recovering after last week’s downturn, with Cantor Fitzgerald tipping Coinbase to lead the rebound. Bitcoin (BTC), still trading under $80,000, performs better than traditional stocks. While the regulatory challenge slows institutional adoption, retail traders and hedge funds remain active participants. 

Analysts at Cantor Fitzgerald believe Bitcoin could outperform other risk assets long-term and serve as a hedge against the U.S. economic crisis. Additionally, Coinbase is seen as a major beneficiary of institutional adoption. 

The Challenge of Institutional Crypto Adoption

Regulatory issues are slowing big investors from fully participating in the crypto market. Despite this, experts believe crypto will eventually gain more support from institutions. However, clear rules are needed for this growth. 

Analysts also see Coinbase, one of the largest trading platforms, as a major player in this shift. They argued that the exchange is set to benefit as more institutions adopt crypto. This is due to its innovations, including Ethereum Layer 2 Base and its partnership with stablecoin issuer Circle.

Coinbase’s Growing Influence Through Base

Base, Coinbase’s Ethereum Layer 2 solution, is growing fast because it offers quicker and cheaper transactions. Analysts predict this could lead to more users and developers, creating a boost that can help Coinbase succeed in the long run. 

Base saw a huge increase in new users in March, with 4.15 million new addresses in one day. Some analysts think this growth may be partly due to short-term rewards or bot activity. Nevertheless, the rising interest in Base is still a big opportunity for Coinbase.

Stablecoins are also helping Coinbase’s growth. The company earned $910 million from stablecoins in 2024, up from $694 million in 2023. The stablecoin market is expected to grow over $1 trillion by 2030, and Coinbase is set to benefit. 

This comes as stablecoins play a bigger role in the crypto space. Analysts predict that Coinbase’s revenue from stablecoins could grow even more, depending on the market conditions.

Coinbase’s Future Outlook 

Cantor Fitzgerald analysts recently initiated coverage on Coinbase shares with a positive rating and a price target of $245, suggesting the stock could rise 53%. 

Although Coinbase stock is currently struggling, experts still believe it has strong long-term potential. The crypto market is expected to recover after 2026, and Coinbase’s growth could be even bigger. 

Coinbase’s strong partnerships with Tether and Cantor Fitzgerald are poised to strengthen the exchange position in the market.

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