Base Network Token Could Generate Billions in Value
US investment bank JPMorgan has predicted that Coinbase could generate up to $34 billion in additional value with the potential launch of a native token for the Base network.
The report published by the bank stated that the Base token could be a new revenue stream for Coinbase and that the company would complement its on-chain trading strategies with USDC returns.
Base Network's Growth and JPMorgan's Valuation
The report noted that the Base network, built on Ethereum and launched in August 2023, has reached over $5 billion in assets locked (TVL) and over 9 million daily transactions. JPMorgan analysts stated that the Base token could “translate the network’s success into equity.”
Given current network data and “high token economics,” JPMorgan estimated Coinbase's long-term market value at between $12 billion and $34 billion. It added that Coinbase could hold approximately 40% of the supply, which would translate to an equity value between $4 billion and $12 billion.
Coinbase Executives Discuss Token Possibility
Coinbase executives have also raised the possibility of a native token for Base in recent weeks. At the BaseCamp conference in Vermont, project leader Jesse Pollak said that issuing a token could accelerate the network's decentralization process and open up new opportunities for developers. CEO Brian Armstrong, speaking on X, said the idea was “in the exploratory phase” but that “there are no definitive plans yet.”
*This is not investment advice.