Coinspeaker
Block Inc Surpasses Coinbase in Market Cap amid Crypto Stocks Struggle
For the first time in about six months, Block Inc, the parent company of Square, and many other fintech ventures, has overtaken Coinbase in market capitalization. The last time the firm surpassed the American crypto exchange like this was in March.
At the moment, Coinbase stock is experiencing a notable decline, which is largely due to falling crypto prices. Unfortunately for Coinbase, this has resulted in what might be its worst trading week of the year so far.
Meanwhile, the current changes do not exactly come as a surprise. As a fact, the development underscores the volatility of the crypto sector, which has been under pressure due to fluctuating prices, regulatory concerns, and broader economic uncertainty.
Earlier in the year, Coinbase flipped Block Inc in terms of market cap. However, the recent downturn in crypto markets has now repositioned the same market cap, putting Block.Inc ahead.
Block Inc Out Outpaces Crypto Exchange as Stocks Decline
For what it’s worth, the present time does not look good on Coinbase’s stock. However, the regulatory environment around crypto has been the major factor influencing its stock performance. That is considering the company’s ongoing legal battle with the US Securities and Exchange Commission (SEC).
Despite Coinbase’s stock struggles, though, analysts remain fairly optimistic about its future. For instance, top investment bank Barclays has adjusted its rating on Coinbase from “Under Weight” to “Equal Weight”. According to a recent Coinbase report, Barclays cited the reason for the adjustment as being because it sees many factors that point to the fact that Coinbase might be a mature business with reliable revenues. Some of the factors include a fast-evolving regulatory environment, steady diversification, and strong industry leadership.
While this adjustment hints at growing confidence in Coinbase’s long-term prospects, Barclays did revise its price forecast for the company’s shares. It has now lowered the forecast from $206 to $169.
Also, a New York judge recently ordered the SEC to provide Coinbase with access to certain documents related to their ongoing case. While this was merely a minor win for the exchange, the development adds to the optimism around the future of Coinbase’s stock.
Throughout this year, the performance of Coinbase stock has been a really turbulent one. It reached a high of $279.71 in March before dropping to $147.35 last week. The company’s shares also fell between 15% and 18% earlier in August, reflecting a broader decline in tech and crypto stocks due to disappointing US economic data and escalating issues in the Middle East.
Block Inc Surpasses Coinbase in Market Cap amid Crypto Stocks Struggle
