Coinbase's (COIN) Upcoming NFT Marketplace is Already 4x Larger Than Leader OpenSea - BTIG

BTIG analyst Mark Palmer reiterated a Buy rating and $500.00 price target on Coinbase Global Inc. (NASDAQ: COIN) as the company's upcoming NFT marketplace appears to be a hit.

Palmer notes that Coinbase NFT, which was just announced on Tuesday, has more than 1.35mm signups, which would be more than four times the 300K+ users on OpenSea (Private), the world’s largest NFT marketplace.

"The popularity of NFTs has been transformational for both marketplaces, including OpenSea, on which they are traded and the blockchain protocols such as Solana and Tezos that have facilitated their growth," Palmer commented. "DappRadar, an analytics platform for decentralized applications, reported that NFT trading volume increased by 704% sequentially during 3Q21 to $10.67bn."

The analyst highlights that OpenSea collects a 2.5% fee on each of the NFT sales facilitated on its marketplace, representing much fuller economics than those realized by COIN by enabling retail trading.

"ssuming total NFT marketplace run-rate trading volume of $50bn, using OpenSea’s 2.5% fee, and applying COIN’s global share of crypto assets of ~11%, we estimate that the company could add $137.5mm in revenues, or about 2% of our FY21E revenue estimate for the company," the analyst commented.

For an analyst ratings summary and ratings history on Coinbase Global Inc. click here. For more ratings news on Coinbase Global Inc. click here.

Shares of Coinbase Global Inc. closed at $246.78 yesterday.

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