To make minting, purchasing, showcasing and discovering NFTs easier, Coinbase Global (COIN) has announced its plans to launch a peer-to-peer NFT marketplace, Coinbase NFT. The company provides end-to-end financial infrastructure and technology for the crypto economy.
NFTs or non-fungible tokens are a record on a cryptocurrency’s blockchain. They can be used to represent reproducible items such as photos, videos, audio, and other types of digital files as unique items. As per data collected by DappRadar, NFT space generated $10.67 billion in trading volume during Q3, up 704% on a sequential basis. (See Coinbase stock charts on TipRanks)
Coinbase said that it was building user-friendly interfaces to move past present complexities and introducing social features to encourage more creators to join the NFT community. The marketplace will allow users to have a personalized feed where they can access their NFTs.
The cryptocurrency exchange platform informed that the initial launch will support Ethereum based ERC-721 and ERC-1155 standards.
Following the news, Needham analyst John Todaro maintained a Buy rating on Coinbase with a price target of $420 (68.5% upside potential).
Todaro noted, “Given COIN’s crypto native audience and retail user engagement, we believe an NFT marketplace will expand revenue opportunities for the company and increase ‘stickiness’ for the platform as it broadens services in the ecosystem.”
“We do note the increase in competition in this vertical. Not only is COIN competing with first movers within NFTs, such as OpenSea, but also is competing with other exchanges such as FTX and Binance which have recently launched NFT marketplaces,” the analyst added.
Based on 12 Buys, 3 Holds and 1 Sell, the stock has a Moderate Buy consensus rating. The average Coinbase price target of $351.50 implies 41% upside potential from current levels. Shares have lost 24% so far this year.