Coinbase(COIN)stockpricehasstagedastrongcomebackinthepastfewdays,risingtoahighof$196.35,itshighestpointsinceAugust27.Ithasreboundedbymorethan34%fromitslowestpointinSeptember,meaningthatitisinabullmarket.
Coinbaseshareshaverisenbyover12%thisyear,whiletheYieldMaxCOINOptionIncomeStrategyETF(CONY)hastumbledbyover50%.Onthepositiveside,itstotalreturnhasbeen1.45%,helpedbyitssubstantialdividendyield.
Coinbaseisfacingmajorheadwinds
Coinbase,thebiggestcryptocurrencyexchangeintheUS,isfacingmajorheadwindsaspricesremainonedge.
WhileBitcoinhasdonewellthisweek,itremainssubstantiallylowerthanitsall-timehighof$73,800.OtheraltcoinslikeEthereum,Ripple,andAvalanchehavealsoslumpedinthepastfewmonths.
ThirdpartydatashowsthatCoinbasehaslostmarketshareagainstotherglobalexchanges.DatabyCoinMarketCapshowsthatCoinbasehandledover$2.45billionworthofcryptocurrenciesinthelast24hours.
Binancemaintainedthebiggestmarketshare,handlingover$16.7billion.Bybithandled$4.3billion,whileOKXprocessedcoinsworthover$2.7billion.TherearerisingoddsthatotherexchangeslikeGate.io,HTX,andUpbitwillpassCoinbaseinthenextfewmonths.
ThesearenotablenumbersbecauseCoinbasewasoncethebiggestcryptoexchangeglobally.ItisalsooneofthemostsecuresinceitisundertheSecuritiesandExchangeCommission(SEC)supervision,andisauditedbyDeloitte,abigfourauditor.
Mostimportantly,Coinbase’sinfrastructurehasbeentrustedbylargeETFissuerslikeGrayscaleandBlackrock.
ThemainreasonwhyCoinbasehaslostmarketshareislikelybecauseitnormallytakeslongertolistnewcryptotokens.ItisnotuncommonforexchangeslikeBinance,OKX,andHTXtolistmostnewcryptocurrenciesandmemecoinsonthesameday.
TheotherchallengeisthatBitcoinandEthereumETFinflowshaveslowed.DatabySoSoValueshowsthatBitcoinETFshaveaddedover$19.36billioninassetsthisyear.Whilethisisagoodnumber,thegrowthhasslowed.SpotEthereumETFshaveshedover$541millioninassets.
Coinbase’sBitcoincatalyst
Onthepositiveside,therearerisingoddsthattheCoinbasestockpricewilldowellifBitcoinstagesacomeback.Inmostperiods,theexchangeseesmorevolumewhenBTCisdoingwellsincesuchactionleadstomorevolume.
TechnicalssuggestthatBitcoinmaystageastrongcomebackinthecomingmonths.Onthedailychart,ithasformedaninverseheadandshoulderspattern,apopularbullishsign.
Bitcoinhasremainedabovethe50-dayand200-daymovingaverages,andhasformedafallingbroadeningwedgepattern.Ithasalsoavoidedformingadeathcrosschartpattern.
PolymarketusersareupbeataboutBitcoinprices.Apollwithover$534kinfundsshowsthatthereisa64%chancethatBitcoinwillretestandpasstheall-timehighof$73,800laterthisyear.SuchamovewillbenefitCoinbaseanditsstock.
Readmore:Bitcoin’s‘Uptober’rallykicksoff,drivenbymarketoptimismandelectionbets
BaseBlockchainisdoingwell
OnthepositivesideforCoinbase,itsBaseBlockchainisdoingwell.ItstotalvaluelockedintheDeFiindustryhasrisenbyover56%inthepast30daysto$2.50billion,whiletheamountofstablecoinsinithasrisento$3.7billion.
BasehasalsobecomealeadingplayerintheDEXindustry.DatashowsthatitsDEXnetworkshandledover$5.6billioninthelastsevendays,makingitthethird-biggestnetworkintheindustry.
Sinceitslaunchin2023,BaseBlockchainhasovertakenpopularblockchainslikeCardano,Arbitrum,Avalanche,Polygon,andNearProtocol.
Onewayofmonetisingthisbusinesswouldbetolaunchitsairdrop.GoingbyArbitrum’sfullydilutedmarketcapofover$5billion,therearechancesthatBasetokenwouldachieveavaluationofover$6billion.
Besides,therecentlylaunchedEigenLayerisvaluedatover$6billion,whileScroll,whichissmallerthanBasehasanFDVof$1.27billion.
CoinbasestockvsCONYETF
Forinvestors,therearetwomainapproachestoinvestinCoinbase.ThemoststraightforwardapproachistoinvestinCoinbasestock.
ThealternativeapproachistobuytheCONYETF,whichusesoptionstomaximisereturns.Itisasingle-stockETFthatgeneratesreturnsbybothbuyingthestockandsellingitscalloptions.
CONYhasoneofthehighestdistributionratesintheindustrysinceithasadistributionrateof94.76%anda30-dayyieldof3.70%.
Itpaysadividendeverymonth.Dataonitswebsiteshowsthatitmadeapaymentof$1.04inSeptember,$1.006inAugust,and$1.57amonthearlier.Thesenumbersmeanthatitsdistributionsarenotregular.
Inmostcases,whenlookingatthetotalreturn,investinginastockisusuallythebetteroptioncomparedtotheETF.Asshownabove,theCOINstockhasrisenby161%inthelast12months,whiletheCONYFundhasrisenby81%inthesameperiod.
ThepostCoinbasestockhas2catalysts:istheCONYETFabetterbuy?appearedfirstonInvezz
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