Coinbase (COIN) Stock Price Prediction: Bullish Analysts Predict Strong Growth Over the Next 3 Years

Enthusiasm for crypto trading is good for Coinbase's bottom line. There is a point at which this relationship backfires, however.

Coinbase (NASDAQ:COIN) stock has had a rocky ride since U.S. President Trump announced his candidacy for a second term in November 2024. After a turbulent period marked by cryptocurrency market volatility and a looming threat of U.S. sanctions on crypto exchange Binance, the crypto exchange is slowly emerging from the shadows.

Coinbase stock tipped off 2025 in poor shape. The letdown followed a strong fourth-quarter report in February, where Coinbase beat analysts’ earnings and revenue expectations.

But COIN had already lost half its value from the April 2021 initial public offering (IPO) price by the time 2024 drew to a close. The crypto exchange stock hit a low point of $31.83 in December of that year.

From there, Coinbase stock slowly recovered, eventually making it back above the $170 level by March 2025. For comparison, COIN’s IPO price was $381 and the stock opened at $429.54 per share.

Coinbase stock is now up 42% over the past six months. In contrast, the world’s largest cryptocurrency, Bitcoin (BTC), has risen 42% over the same period.

Bitcoin comprises 32% of Coinbase’s trading volume. So far in 2025, Bitcoin is down 12% and Coinbase is down 23%. Before that, Bitcoin fell 37% in 2024 and Coinbase dropped 64%.

Coinbase’s revenues come from trading fees, subscriptions and services. The trading fee revenue grows and dips with crypto prices. Higher crypto prices encourage more revenue-generating transactions for Coinbase, while falling crypto prices do the opposite.

The subscription and service revenues are less volatile. Coinbase has nearly tripled these revenues since 2022, but they accounted for just 37% of total sales in 2024.

Even with the rising subscription and services revenue, Coinbase stock price movements have roughly aligned with Bitcoin price trends. This makes sense: Bitcoin comprised 32% of Coinbase’s 2024 trading volume.

Catalysts That May Impact Coinbase Stock Over The Next 3 Years

Catalysts that could drive the Coinbase stock price higher or lower over the next three years include the performance of crypto, regulation and litigation trends, institutional trading volume and Coinbase’s expansion efforts.

Crypto Market Performance

Enthusiasm for crypto trading is good for Coinbase’s bottom line. There is a point at which this relationship backfires, however. Since going public, Coinbase has underperformed Bitcoin. This prompts an opportunity-cost question for investors bullish on Bitcoin: Invest in Bitcoin directly for potentially higher returns or invest in Coinbase stock? Either strategy includes exposure to Bitcoin’s downside.

That downside includes reactivity to economic news. In the immediate future, any signs of recession or inflation in the U.S. would be bad for crypto prices and Coinbase.

Longer term, the next Bitcoin halving will encourage Bitcoin appreciation, potentially pushing other cryptocurrencies higher also. Halvings reduce the rate at which new Bitcoins are minted. The last halving was in April 2024 and the next should happen in April 2028.

Regulations And Litigation

Many expect a light regulatory environment for crypto trading during President Trump’s second term. Trump has promised as much, according to an AP report. He's also said he will establish a federal crypto reserve and make the U.S. a leader in crypto.

In February, the SEC dismissed a civil enforcement action against Coinbase. The 2023 case accused Coinbase of acting as an unregistered broker.

After the U.S. Supreme Court ruled in favor of the SEC in a case against crypto exchange Binance, the SEC announced it was dropping its case against Coinbase. The news arrived after President Trump said he planned to cut tariffs on U.S. goods from China.

Coinbase stock rose sharply following the news. But the stock slid later in the session as Trump announced he was planning to impose tariffs on goods from Vietnam. The move came amid rising concern over a potential trade war.

The Trump administration had already imposed tariffs on $360 billion worth of Chinese goods. In December 2024, the U.S. president said he planned to begin cutting those tariffs.

The Trump administration began imposing tariffs on Chinese goods in early 2018 after the administration accused China of unfair trade practices.

China retaliated with tariffs on U.S. goods, and the two countries have been engaged in a trade war ever since.

The U.S. also imposed tariffs on goods from Mexico after the administration said Mexico wasn't doing enough to reduce the number of migrants crossing the U.S. border illegally.

The Trump administration threatened to impose tariffs on cars and auto parts from the European