Coinbase Base Token Could Unlock $34B Gains: JP Morgan Prediction

Coinbase Base Token Growth & Token Potential Highlighted by JP Morgan

JP Morgan's recent statements and strategies say a lot about the cryptocurrency market, Bitcoin, and the upcoming Coinbase Base token potential, as it could unlock billions in value while Coinbase expands its on-chain trading, USDC yield programs, and decentralized finance ecosystem.

Coinbase Base Token Has Potential: JP Morgan Reports

JP Morgan’s equity research report highlights that Coinbase’s Base token could eventually reach a market cap of $12 billion to $34 billion, providing a significant new revenue stream. The company may hold about 40% of the token supply, worth $4B–$12B in equity.

Source: Wu Blockchain X

Base, Coinbase's Ethereum-based Layer 2 network, launched in August 2023. It now has over $5 billion in total value locked (TVL) and more than 9 million daily transactions, according to DefiLlama. Analysts say a Base token could “equitize the success” of the network, turning adoption into real financial returns.

While Coinbase CEO Brian Armstrong confirmed the company is exploring a token, he emphasized there are no definitive plans yet. If launched, it could accelerate decentralization and expand opportunities for developers building on Base.

Reasons for This Stance

JP Morgan explains that it is optimistic because of a number of reasons:

• To start with, Coinbase is considering adjusting its USDC yield program, which would enable it to keep more profits that are currently being paid to the users.

• Second, a DEX aggregator integrated in Base makes the platform a competitor of decentralized exchanges that currently constitute approximately a quarter of spot crypto trading.

• Third, the network has demonstrated high adoption, whereby the transaction volume and value locked are increasing, implying that a native token is in high demand.

All these elements add to a good argument for a possibly high market valuation of Base.

Recent Bitcoin and Crypto thoughts of JP Morgan.

• The bank has declared that it will accept Bitcoin and Ether as loan collateral to institutional clients. These pledged assets are going to be secured by a third-party custodian.

• The importance of this move is that the current statement of JP Morgan CEO Jamie Dimon supports Bitcoin. However, in 2024, he called Bitcoin a scam and a Ponzi scheme.

Source: WatchGuru X

• The action of JP Morgan is an indication that cryptocurrencies are becoming core financial assets and not fringe ones, even though the executive level might still be skeptical.

• The approach of JP Morgan is to embrace crypto into conventional finance in a controlled and safe way. The bank can offer liquidity by accepting Bitcoin and Ether as security with the lowest risk by holding the assets in the custody of third parties. This will be a balanced strategy between innovation and caution.

• Michael Saylor Reacts to JPMorgan Bitcoin Strategy after JPMorgan allows institutional clients to use BTC and Ether as loan collateral.

• The announcement follows BTC 2025 rally and eased U.S. regulations, sparking humorous and supportive reactions from the crypto community, highlighting growing mainstream adoption. 

Source: Michael Saylor X

Conclusion

The most recent actions of JP demonstrate increased confidence in crypto. The new yield strategies, along with the integration of institutions into the crypto space, represent the changing nature of the financial sector in its relationship with digital assets.