Coinbase is leading S&P500 as the fastest rising share of June

The share of Crypto fair Coinbase (Coin) went through a sharp increase of no less than 43 percent in June. This makes the company the best performing share within the renowned S&P 500 index. What explains this rise?

Bill ensures optimism

The price increase of Coinbase is partly attributed to the developments around the so -called Genius Act. According to analysts, this bill, which focuses on Stablecoins linked to the US dollar, offers opportunities for new sources of income. As a result, investors are shifting their focus from traditional trade allowances to income from stablecoin activities.

Coinbase has close ties with Circle, the publisher of Stablecoin USDC. This partnership plays an important role in the business model of the company. Coinbase not only receives all proceeds from USDC credits on its platform, but also around 50 percent of other USDC-related income. According to FinTech analyst Devin Ryan, this represents no less than 99 percent of the total turnover of Circle.

Strong monthly performance

Since admission to the S&P 500 at the end of May, Coinbase’s share has risen three months in a row. With a peak of 382 dollars this week, and a final price of 353 dollars, the share has reached its highest level since the IPO. In the after -stock trade, the share still fell slightly to 351 dollars.

For comparison: the wider S&P 500 index rose by approximately 5 percent in June, helped by decreasing geopolitical tensions. The performance of Coinbase stands head and shoulders above this.

It is striking that the trade volumes on Coinbase have fallen precisely despite the rising rate. Since April, on average daily trading volume on the platform has steadily declined. This indicates that the current price rise is mainly driven by fundamental developments and less by active trade.

In the short term, the Coinbase price could be put on the brakes. After such a rapid rise, that is completely healthy. But in the long term there is certainly more in the barrel. For example, analysts from Bernstein provide a course of $ 510.