Coinbase Races To Top Spot Among S&P 500 Gainers Amid Stablecoin Frenzy

Coinbase (COIN) stock was the top gainer in the S&P 500 index on Tuesday, continuing to benefit from investor enthusiasm related to stablecoins.

The stock jumped 12.1% on Tuesday, compared with the 1.1% gains of the broader S&P 500, ending at the highest point since November 2021.

It has now risen 35.8% over the past four sessions after the cryptocurrency exchange introduced its Coinbase Payments offering, which the company has called a “stablecoin payments stack.”

According to TheFly, Benchmark analyst Mark Palmer raised the firm's price target on Coinbase to $421 from $301 on Monday, based on a flurry of positive news for the cryptocurrency exchange.

The brokerage noted that "each of those headlines and announcements appeared to affirm or boost COIN's long-term growth prospects." The analyst particularly emphasized the passage of the stablecoin bill in the U.S. Senate, which will regulate the digital assets typically pegged at 1:1 with the U.S. dollar.

The analyst reportedly thinks that additional, significant news supportive of Coinbase "may be in the offing, such that a path to a meaningfully higher price for the stock may be coming into view."

Retail sentiment on Stocktwits jumped to ‘extremely bullish’ (82/100) territory from ‘neutral’(53/100) a day ago, while retail chatter remained ‘neutral.’

“Getting a very strong breakout and looks very good to me here, this is very bullish action,” one user wrote.

https://stocktwits.com/trading_momentum/message/618905975 

Coinbase stock has gained over 28% this year. Over the past week the company has gained a license from Luxembourg to offer cryptocurrency services across the European Union (EU) and said it will relocate its regional headquarters from Ireland.

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