Rosenblatt recommends buying Coinbase stock due to USDC growth

Investors are being encouraged to buy shares of Coinbase, according to a note from analyst Chris Brendler at Rosenblatt. He points out that the company is seeing growth in its USDC stablecoin, which is helping to balance out declines in its core trading business. Trading volumes for Coinbase have dropped significantly. March's daily average trading volume is 20% lower than in February. Despite this, growth in USDC has surged. USDC is the second-largest stablecoin, and Coinbase has a 50% revenue sharing agreement with it. Brendler notes that USDC's market share has increased by 36% this year. Brendler believes that potential new legislation for stablecoins expected in the third quarter of 2025 could boost Coinbase's non-trading revenue. This might lead to an increase in the stock's value. He recommends investors view current share price drops as buying opportunities and maintains a "BUY" rating with a target price of $305, which suggests a possible 50% increase. Despite some challenges, Coinbase's performance is still relatively positive since the recent election. The company’s stock is down 9% in March and 21% year-to-date, but Brendler sees reasons for optimism based on the evolving political landscape regarding cryptocurrency in Washington, D.C.