JPMorgan Thinks Coinbase Could Tap a $34B Web3 Goldmine — Is Base the Sleeper Token of Web3?

JPMorgan has flipped bullish on Coinbase — and the reason isn’t trading volume, ETFs, or ￰0￱ bank now believes Coinbase’s Base network could represent a $34 billion opportunity, calling the Layer-2 ecosystem a potential breakout revenue machine for the ￰1￱ marks one of the strongest signals yet that Wall Street is finally taking Web3 infrastructure seriously, not just crypto prices. Base: The “Hidden Engine” Behind Coinbase’s Future According to JPMorgan’s note, Base could become a massive fee-driven ecosystem, earning revenue from: on-chain transactions, developer activity, DeFi and app expansion, and future tokenized ￰2￱ other words, Coinbase could profit even when markets are flat, as long as Base keeps growing.

JPMorgan’s thesis centers on one core belief: Web3 will reward the platforms that own the rails, not just the traffic. Base, as a Coinbase-controlled Layer-2, puts the company in a position to earn recurring fees from every transaction, every app, and every on-chain product built inside its ￰3￱ Coinbase’s exchange business — which rises and falls with market cycles — Base represents ongoing, compounding network ￰4￱ in an environment where developers are fleeing expensive Layer-1 chains for cheaper alternatives, Base’s low-cost model gives Coinbase a powerful competitive ￰5￱ Coinbase moves from “exchange revenue” to “infrastructure revenue,” its business becomes: more scalable, more predictable, and much more ￰6￱ that’s exactly what JPMorgan is betting on.