In a research note to clients on Thursday, Needham equity analyst for Coinbase, John Todaro, outlined a bullish case for the cryptocurrency exchange Coinbase.
According to Benzinga, the analyst believes that Coinbase could see a $1.2B revenue if the exchange’s new non-fungible token (NFT) business goes as planned, Benzinga reported.
“We estimate annualized revenue at a scale of [$1.26 billion,] which would represent an added EV of $10.1Bn, $12.6Bn, and $13Bn at 8x, 10x, and 13x multiples respectively,” Todaro said.
The analyst based his estimates on comparing how Coinbase’s upcoming NFT business would develop next to already existing top NFT marketplaces such as OpenSea.
OpenSea is worth over $13.3 billion and has an all-time NFT sales volume of over $20 billion with around 1.2 million traders. The platform is the largest NFT marketplace in the world.
Although Coinbase is yet to launch its NFT business for users, the company’s CEO, Brian Armstrong, said he expects the firm’s NFT business to be bigger than its current cryptocurrency offerings, Benzinga reported.
Coinbase Announces NFT Marketplace
Last October, Coinbase announced that it would launch its NFT marketplace. The company called on users to join the waitlist to gain early access to the platform, enabling them to mint, trade, and collect various non-fungible tokens.
The exchange reportedly has more than a waiting list of 1 million customers for its NFT marketplace.
While NFT was the hottest topic in 2021 with sales volume reaching $40 billion, this year has been quite dull for the asset class. An earlier report confirmed that major NFT sales have experienced a significant drop since the start of 2022.
Interestingly, the drop in NFT sales does not seem to discourage investors as they are enthusiastic about the upcoming Coinbase’s NFT marketplace, eagerly waiting for the launch. Some users believe it will be a fine competitor to OpenSea.
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