Coinbase stock rose strongly in June, impressing investors and setting new records.
- Coinbase gained 43% in June, topping the S&P 500
- GENIUS Act helped shift focus to stablecoin revenue
- Circle’s market cap nearly matches Coinbase’s
Coinbase Leads the Market in June
Coinbase (COIN) saw its stock price jump 43% in June, making it the top performer in the S&P 500. This is its best month since November and part of a third straight month of gains. The stock reached a high of $382 before ending the week at $353. In after-hours trading, it dropped slightly to $351.
This strong rise comes after Coinbase was added to the S&P 500 index at the end of May. The index itself rose about 5% this month, as global tensions cooled down.
Stablecoins Drive New Investor Interest
A recent move in Washington has shifted investor focus. U.S. lawmakers made progress on the GENIUS Act, which aims to regulate stablecoins—digital assets tied to the U.S. dollar. This gave a boost to firms like Circle, which works closely with Coinbase through the USDC stablecoin.
Circle’s share price reached a record high, and its market cap now nearly matches that of Coinbase. That shows growing confidence in dollar-pegged stablecoins and their future in U.S. markets.
Coinbase’s Role in USDC Earnings
Coinbase holds all the interest earned on USDC balances within its platform and also receives nearly half of other USDC-related income. This income makes up almost 99% of Circle’s total revenue. That gives Coinbase shareholders additional value, without any added cost.
Analysts, like Devin Ryan of Citizens Bank, say this model could keep profits growing, as more investors see USDC as a strong digital asset.
Lower Trading Volume Persists
Even with stock prices rising, overall trading activity on Coinbase remains low. Daily trading volumes have dropped since April. That could show a cooler interest in crypto trading for now, but investors seem more focused on stablecoin growth and long-term returns.
Source: coindesk.com
