Coinbase Global Inc may be at risk of seeing its stock price halved, according to Dan Dolev, Senior Analyst at Mizuho. He has maintained his “underperform” rating on the crypto exchange, with his $27 price objective indicating a potential 50% crash from the current price.
The analyst believes Coinbase is losing retail trading share to rival Robinhood Markets Inc. This may be partially attributed to the lawsuit filed against the crypto company by the U.S. Securities and Exchange Commission last week. Dolev also noted that Coinbase’s higher trading fees for small-ticket traders, to offset volume declines, may have driven customers to Robinhood, which has not increased fees so far.
Coinbase reported $110 million of total transaction revenue in April. The analyst further stated that if the company maintained its share and retail take rate of 168bps, it would imply $117 million of retail transactions for the month. Coinbase stock is currently down 35% from its year-to-date high.
