Crypto analyst Will Clemente believes Coinbase’s stock (COIN) is a significant opportunity for investors, comparing it to a “venture-style bet” like Tesla in its early days. He argues that the market is overlooking the potential of Coinbase’s revenue streams beyond just its exchange business.

Coinbase’s Transformation to a “Crypto Super App”

Coinbase’s Expansion Beyond Exchange Services

Clemente highlights Coinbase’s efforts to diversify its offerings, including the launch of its Ethereum layer-2 network, Base. This network is generating substantial revenue through sequencer fees, a fact that traditional investors, according to Clemente, are not taking into account.

Base Network’s Early Success Signals Future Growth

Base Network – A Source of Undervalued Revenue

Coinbase, despite being relatively new, has already captured a significant portion of the market with a total value locked (TVL) of $5.35 billion. The network’s daily transaction volume translates to $30 million in top-line revenue for Coinbase in just the last 30 days, extrapolating to a potential of $360 million annually.

Coinbase Share Price Decline Mirrors Market Volatility

Market Downturn Impacts Coinbase

Coinbase’s share price has fallen alongside broader market weakness, with COIN dropping nearly 16% over the past five days. This decline reflects a similar trend in the S&P 500 and Bitcoin, which have dipped over 3% and 4.67% respectively during the same period. Geopolitical tensions further contribute to the market uncertainty.

ARK Invest Continues to Sell Coinbase Shares

ARK Invest Trims Coinbase Holdings

Cathie Wood’s ARK Invest has been selling off its Coinbase holdings, with a recent sale of 3,689 shares adding to a larger divestment last month. These sales come despite a significant year-to-date increase in Coinbase’s share price prior to the recent decline.