- Bitcoin and Ethereum are not the only booming assets in the crypto world right now: Coinbase stocks are also on a rally.
- In May 2022, Terra collapsed, leading to a brutal crash that resulted in many crypto projects declaring bankruptcy.
- Many digital currencies and tokens, including Bitcoin and Ethereum, are struggling to reach their pre-Terra collapse prices.
Following the rapid increase in Bitcoin and Ethereum prices, Coinbase’s COIN shares are also on the rise: Why is COIN attracting attention?
After Bitcoin and Ethereum, COIN is Moving
Bitcoin and Ethereum are not the only booming assets in the crypto world right now: Coinbase stocks are also on a rally. The stocks of Coinbase, the largest cryptocurrency exchange in the United States (listed as COIN on Nasdaq), are trading at their highest level since Terra collapsed in May 2022.
COIN’s price has risen nearly 6% to $115.75 per share so far today and reached almost $117 by Friday. In the past month alone, COIN has shown an increase of over 41% compared to when it was trading at $82 per share.
San Francisco-based Coinbase has been a publicly traded company on Nasdaq since 2021. COIN was last at this price in May 2022 when the crypto project Terra collapsed, taking much of the digital asset ecosystem with it.
Terra was a popular crypto ecosystem with applications mostly focused on algorithmic stablecoins. Its native cryptocurrency, LUNA, was one of the largest digital assets by market capitalization. The collapse of Terra in May 2022 led to a brutal downturn, causing many crypto projects to declare bankruptcy.
Many digital currencies and tokens, including Bitcoin and Ethereum, are struggling to reach their pre-Terra collapse prices. However, today, they are making a comeback; Bitcoin, the largest digital token by market capitalization, has surpassed $38,000, and Ethereum reached nearly $2,131 on Friday.
Why is Coinbase grabbing attention?
The reason for Coinbase’s attention could be that several prominent Wall Street firms have selected the company as a custodian or surveillance sharing partner for their own spot Bitcoin exchange-traded fund (ETF) applications. Companies like BlackRock, the world’s largest asset manager, and Fidelity have long wanted to use Coinbase for the anticipated investment product.
A Bitcoin ETF would provide traditional investors with exposure to the digital asset’s price through shares that track it. The U.S. Securities and Exchange Commission is currently reviewing a series of applications for such a product.
