Coinbase shares surged sharply on Monday after Goldman Sachs upgraded the cryptocurrency exchange operator, signaling renewed confidence in the company’s long term growth strategy and the broader digital asset sector. The stock climbed nearly 8 percent during regular trading after the investment bank raised its rating on COIN from neutral to buy and increased its 12 month price target.
The move highlights growing optimism around crypto firms that are expanding beyond pure trading revenues and investing in infrastructure, tokenization and emerging on-chain markets.
Goldman Sachs Raises Target, Sees Upside Ahead
In a research note issued on Monday, Goldman Sachs analyst James Yaro lifted Coinbase’s 12 month price target from 294 dollars to 303 dollars per share. At the time of writing, Coinbase shares were trading around 254.92 dollars, implying an upside potential of roughly 18 percent based on the new target.
Yaro said Goldman Sachs holds selective optimism toward US brokerage firms and companies positioned as structurally growing crypto infrastructure players. Coinbase, in his view, stands out due to its efforts to diversify revenue streams and reduce reliance on transaction fees tied to market volatility.
The stock ended the session with strong gains and showed little movement in after-hours trading, reflecting sustained investor confidence following the upgrade.
Infrastructure Focus Drives Bullish Outlook
A key reason behind Goldman Sachs’ upgrade is Coinbase’s push into broader crypto infrastructure. Yaro noted that firms building foundational services for the digital asset ecosystem may enjoy more stable and predictable growth compared to trading focused platforms.
Coinbase has been expanding into areas such as tokenization, custody services and blockchain based financial products. These initiatives are designed to support institutions and developers rather than just retail traders, potentially creating recurring revenue sources over time.
Goldman Sachs also highlighted the rise of prediction markets as a promising segment within crypto. These platforms allow users to trade on the outcome of real-world events, blending financial markets with decentralized technology.
Prediction Markets and Platform Expansion
Coinbase has already begun moving into prediction markets through a partnership with Kalshi. The integration allows users to access regulated prediction contracts directly through the Coinbase platform, giving the company exposure to one of the fastest-growing niches in crypto over the past year.
This expansion fits into what Coinbase CEO Brian Armstrong has described as the company’s everything exchange strategy. According to Armstrong, Coinbase aims to become a central hub for a wide range of crypto related services rather than focusing solely on spot trading.
Looking ahead to 2026, Coinbase plans to place greater emphasis on stablecoins, broaden its exchange offerings and further develop Base, its Ethereum layer two network. Base has quickly emerged as an important part of Coinbase’s ecosystem, attracting developers and decentralized applications while supporting lower-cost transactions.
Regulatory Shifts Could Fuel Adoption
Beyond Coinbase specifically, Goldman Sachs expressed a constructive outlook on the crypto market as a whole. Yaro said the bank expects increased adoption from both retail investors and institutions in 2026, supported by evolving regulatory frameworks in the United States.
He pointed to ongoing discussions around crypto market structure legislation in Congress, which could bring greater clarity to the sector. Clearer rules, according to the report, may encourage institutional players who have so far been cautious due to regulatory uncertainty.
At the same time, Yaro cautioned that regulatory setbacks remain a risk. If proposed legislation fails to pass, it could slow momentum and act as a headwind for the broader crypto ecosystem.
Confidence Backed by Analyst Track Record
The report represents a notable endorsement of Coinbase from one of Wall Street’s most influential banks. According to TipRanks data, Yaro has a success rate of 62 percent, with an average annual return close to 16 percent on his stock recommendations.
For investors, the upgrade underscores a shift in how major financial institutions view crypto companies. Rather than focusing solely on trading volumes and price cycles, analysts are increasingly paying attention to infrastructure, product depth and long term adoption trends.
As Coinbase continues to position itself at the center of the digital asset economy, Goldman Sachs’ bullish stance suggests the market may be starting to price in that broader vision.
