Block Inc., the parent company of Square, Tidal and Bitcoin project Spiral, surpassed Coinbase in market capitalization for the first time since March, reflecting changing market dynamics between the two fintech and cryptocurrency players.
Coinbase faces market challenges
Shares of Coinbase, one of the world's largest cryptocurrency exchanges, fell sharply this week, posting its worst week of the year. The decline reflects a broader cryptocurrency market downtrend, with investors reacting to falling cryptocurrency prices, allowing Block Inc. to regain its position above Coinbase in market capitalization.
In March, Coinbase surpassed Block Inc. in market capitalization for the first time, driven by strong market momentum and increasing investor confidence, but recent market volatility has reversed that trend and Coinbase once again fell into second place.
Barclays lowers Coinbase price target
Investment bank Barclays recently adjusted its outlook on Coinbase, adjusting its rating from "underperform" to "equal to the market." This reflects Barclays' belief that Coinbase is gradually transforming in an increasingly mature regulatory environment and is leveraging its diversified The company’s globalized business model and strong industry leadership have received positive reviews.
Despite the improved outlook, Barclays lowered its Coinbase stock price target to $169 from $206, showing caution about current market conditions. As of Friday, Coinbase shares closed at $147.35, down from a yearly high of $279.71 in March.
Coinbase still faces regulatory challenges
Coinbase has scored a small victory in its legal battle with the U.S. Securities and Exchange Commission (SEC), with a New York judge ruling that the SEC must provide Coinbase with certain documents related to the lawsuit. However, the court denied Coinbase's request to subpoena SEC Chairman Gary Gensler, reflecting the company's challenges in a complex legal environment.
“Although we withdrew certain specific requests and the judge recognized reasonable restrictions, this ruling generally agrees with the core claims we have been pursuing for months.” Coinbase General Counsel Paul Grewal said in an interview.
As Block Inc. and Coinbase continue to compete in the rapidly changing fintech and cryptocurrency markets, volatility in the market capitalizations of both companies is expected to continue. For Coinbase, how to stabilize share price performance amid regulatory pressure and market volatility will be key, while Block Inc. will rely on its diverse business portfolio to maintain its leading position.
This article The market value of Block, the company founded by Twitter, surpassed that of Coinbase and grew against the trend in the market downturn. It appeared first on Chain News ABMedia.
