Needham equity analyst for Coinbase, John Todaro, outlined a bullish case for the cryptocurrency exchange Coinbase in a research note to clients on Thursday.

According to Benzinga, if Coinbase’s new non-fungible token (NFT) business goes as planned, the exchange could see a $1.2B revenue. Benzinga reported that annualized revenue is estimated to be at a scale of [$1.26 billion], which would represent an added EV of $10.1Bn, $12.6Bn, and $13Bn at 8x, 10x, and 13x multiples, respectively.

The analyst based his estimates on comparing Coinbase’s upcoming NFT business to top NFT marketplaces such as OpenSea.

OpenSea is worth more than $13.3 billion and has a total NFT sales volume of more than $20 billion with approximately 1.2 million traders. The platform is the world’s largest NFT marketplace.

Although Coinbase has yet to make its NFT service available to users, the company’s CEO, Brian Armstrong, has stated that he expects the firm’s NFT service to be larger than its current cryptocurrency offerings, according to Benzinga.

Coinbase announced the launch of its NFT marketplace in October of last year. Users were encouraged to join the waitlist in order to gain early access to the platform, which would allow them to mint, trade, and collect various non-fungible tokens.

According to reports, the exchange has a waiting list of over 1 million customers for its NFT marketplace.

While NFT was the hottest topic in 2021, with sales volume reaching $40 billion, the asset class has been relatively quiet this year. An earlier report confirmed that major NFT sales have dropped significantly since the beginning of 2022.

Interestingly, the drop in NFT sales does not appear to be discouraging investors, who are excited about the upcoming Coinbase NFT marketplace and eagerly await its launch. Some customers seem to think that it will be a rival to popular NFT marketplace Opensea.

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