COIN stock has been on a continuous downward trajectory since the beginning of 2022 and has corrected more than 60% from its all-time highs.
Last Friday, April 22, the US stock market witnessed a major correction with Dow Jones (INDEXDJX: .DJI) tanking nearly 3%. Crypto exchange Coinbase Global Inc (NASDAQ: COIN) stock also witnessed a brutal hammering tanking 4.2% and registering its all-time low despite the news related to its news NFT marketplace.
Last Friday, the COIN stock ended trading at $131.52. The stock has already corrected 35% since the beginning of this month. Furthermore, the COIN stock has eroded 56% of investors’ wealth since its listing last year in April 2021.
As we’ve noted above, Friday’s price correction of COIN stock comes just within two days of Coinbase announcing the beta launch of its NFT marketplace. The Coinbase NFT marketplace currently supports only Ethereum-based collections. However, in the future, it plans to add support for additional blockchain protocols apart from Ethereum.
Coinbase announced its plan to enter the NFT space last year in October 2021. Nearly 1.5 million people had signed up for the waitlist before the beta launch on April 20. But since the beta launch of the Coinbase NFT marketplace, the COIN stock has corrected 15%. It shows that the news hasn’t been powerful enough to change the trajectory of the stock.
However, the Coinbase NFT marketplace differentiates itself from other competitors. It allows NFT buyers and sellers to interact by offering social features on the platform. Besides, it also doesn’t support in-platform NFT minting as of now.
Performance of COIN Stock amid NFT Marketplace News and Other Factors
Crypto exchange Coinbase managed to make its way to Wall Street last year amid all the buzz around IPOs. Also, it garnered a lot of attention being the first crypto firm to get a public listing. However, the excitement fizzled out in a few months.
The COIN stock, however, tried to reverse its trajectory and touched an all-time high in November 2021. But since then, it has corrected by nearly 60% in the last four months. Last Thursday, JPMorgan analyst Kenneth Worthington cut his price target for COIN by 31%, to $258. In a note to clients, he wrote:
“The crypto markets are in need of some excitement in terms of new products and/or new use cases to continue to drive the crypto markets to becoming more mainstream, thus driving activity levels.”
John Todaro, a senior research analyst at Needham & Company, says that the major question is whether or not Coinbase’s NFT marketplace plans will succeed. Speaking to The Block, he said:
“Investors are now looking for ‘can you really scale it, can it do volume, can it really compete with Open Sea? Is this really going to add to revenue versus is this just going to launch and maybe fizzle out.”
A few days back, even Mizuho analyst had put a red flag on Coinbase’s NFT plans.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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