Crypto volatility will work as a catalyst for COIN stock
Cryptocurrency is an intimidating asset class and not easy to understand. However, it is growing in popularity around the world and people want to add crypto to their wallets. Since there are several tokens to choose from, there are plenty of ways to earn money.
Global Coinbase (NASDAQ:PIECE OF MONEY) attracts attention whenever there is movement in Bitcoin (CCC:BTC-USD) Where Ethereum (CCC:ETH-USD). It is important to keep in mind that Coinbase is separate from Bitcoin or any other crypto asset and is not directly associated with them anywhere. It facilitates the buying and selling of crypto assets.
The company has solid growth potential in the coming months. COIN stock has fallen 27% in the past month. Despite this, I believe in the growth potential of Coinbase and its strong expansion strategies that will drive results. With that in mind, let’s dig deeper into the COIN stock investment case.
More Gains He Stores For COIN Stock Due To Crypto Volatility
Investors should keep in mind that Coinbase’s results will remain volatile due to the volatility of the cryptocurrency. Coinbase is not a company that offers a single product or has recurring subscription revenue. Rather, it relies on transaction fees. Whenever investors buy or sell cryptocurrency, Coinbase makes money. With an increase in widespread adoption, the company will see higher trades and more fees.
It didn’t take long for Coinbase to get to where it is today and the popularity of the cryptocurrency will only increase, making it the first choice for investors. The company recorded sales growth of more than 300% year on year. It is very profitable and could become more important in the coming year. Coinbase is growing fast and growing. It is growing in popularity with the rise and fall of Bitcoin and although it is not directly affected by the ups and downs, COIN stock will continue to show volatility in the months to come due to the volatility of crypto.
Non-fungible tokens (NFT) are growing
Cryptocurrencies and NFTs appear to be the two most used words in the financial industry in 2021 and they will continue to be held constant next year. NFTs have opened up new investment opportunities. It is a unique crypto asset that helps authenticate ownership of digital assets such as records, artwork, virtual pets, and virtual real estate. According to Business intern, the NFT market is worth over $ 7 billion. Sales have gone from $ 400 million per month to $ 2 billion per month in just one year. There is no stopping the growth of TVNs in 2022.
The NFT market is experiencing massive growth that has not gone unnoticed. Coinbase is building an NFT market and has enough liquidity to invest in it. The company has high capital efficiency which allows it to invest in products such as NFTs. She already has an open waiting list, and the company may be offering NFTs as early as early next year. The NFT offering could be transformational for the business as few people know about them and many don’t know how to go about investing.
The result on COIN’s stock
The COIN stock is a safe bet for those who want to invest in crypto but are overwhelmed with the sheer number of tokens and assets. The stock has the potential to hit $ 300 in the coming months and the current decline makes it the perfect opportunity to buy.
You can see volatility in the stock whenever the price of Bitcoin goes up or down, but that’s because the market assumes that the COIN stock is directly associated with Bitcoin. And it is wrong. Any increase in trade and transactions will cause the stock to rise.
Overall, the growing crypto craze and awareness of NFT will push the stock higher and generate solid returns for investors.
At the date of publication, Vandita Jadeja had (directly or indirectly) no position on the titles mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.
Vandita Jadeja is a CPA and freelance financial writer who enjoys reading and writing about stocks. She believes in buying and holding for long term gains. His knowledge of words and numbers helps him write a clear stock market analysis.