Cantor Fitzgerald analysts have initiated coverage of Coinbase with an 'Overweight' rating and a price target of $245, emphasizing that Wall Street has overlooked the potential of the crypto exchange’s Ethereum-based network alongside its relationship with Circle. According to their report, Coinbase's evolution from a trading platform to a critical infrastructure layer of the crypto economy is underscored by its earnings from Circle’s $60 billion reserves backing the USDC stablecoin. During Q4, Coinbase reported significant revenue from its layer-2 network, Base, which has seen rapid user growth. Analysts anticipate that Coinbase’s stablecoin revenue could increase substantially as the market for stablecoins expands and regulatory clarity improves. With ongoing developments in USDC and the burgeoning demand for tokenization, Coinbase is expected to enhance its market position against competitors. The trends suggest a bright future for Coinbase, contingent upon the growth in its ecosystem and favorable regulatory conditions.

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