Analysts See Crypto Winter Thaw for Robinhood and Coinbase

Analysts See Crypto Winter Thaw for Robinhood and Coinbase

Analysts See Crypto Winter Thaw for Robinhood and Coinbase

Analysts are seeing signs of an emerging crypto winter thaw, particularly for Robinhood and Coinbase. Despite the mixed Q3 results, analysts are bullish on the platform’s subscription services, upcoming products and solid user base. The increase in interest rates has also contributed to the income of the two companies.

Since bitcoin peaked about a year ago, cryptocurrency markets have been trending lower. The cryptocurrency sell-off known as crypto winter has resulted in growing businesses shutting down and the overall market cap decimated. Potential thaw with prospects for crypto market recovery. According to data from DappRadar, crypto wallet activity increased by almost 7% in October compared to September.

The blockchain data company’s unique active wallet metric averaged more than two million over the past month. Additionally, institutional companies have invested significantly in blockchain technology as retail investors dumped cryptocurrencies. Though badly hit by the recession, two companies appear to be emerging over the next year. Despite mixed Q3 results, Wall Street analysts seem bullish on Robinhood Markets and Coinbase Global.

Emergent Prospects for Robinhood and Coinbase

After meeting with Robinhood CEO Vlad Teneve and CFO Jason Warnick, one analyst expressed confidence in their announcements. In addition to products like a self-custody crypto wallet and a retirement account, he highlighted improvements to Robinhood Gold, the platform’s subscription. Service. An upcoming feature will enable subscriber balances with higher-yielding deposit options. Another analyst was like Coinbase’s service and subscription elements, highlighting revenue growth in the company’s segments.

Their confidence has also been boosted by Coinbase’s “stable revenue and healthy metrics,” including a solid user base and assets under management. An increase sometime in 2024.

Higher Interest Income

Meanwhile, an additional feature of this year’s turbulent economic swings may have been a boon to these companies. The Federal Reserve and other central banks have aggressively raised interest rates to control runaway inflation. Higher interest rates pressure companies with higher borrowing costs, and Robinhood and Coinbase see revenue from interest-based products rise.

Through its subscription service, Robinhood allocates eligible customers at very competitive rates to allow them to make more significant investments. Although cheaper than average, interest rates on these loans have resulted in higher revenue due to rate hikes by the Federal Reserve. In part, Coinbase earns interest from some of the products it offers to its customers. For one thing, interest rates on bitcoin-backed loans to customers have risen. In addition, interest rates on USD Coin (USDC) reserves have also increased.

Although inflation has caused retailers to abandon risky assets like cryptocurrencies, rising interest rates appear to be supporting trading platforms. Analysts expect net interest income at Robinhood to rise 65%. Meanwhile, Refinitiv’s IBES data expect Coinbase’s revenue from subscriptions and services, including interest income, to grow 28%.

Analysts are seeing signs of an emerging crypto winter thaw, particularly for Robinhood and Coinbase. Despite the mixed Q3 results, analysts are bullish on the platform’s subscription services, upcoming products and solid user base. The increase in interest rates has also contributed to the income of the two companies.

Since bitcoin peaked about a year ago, cryptocurrency markets have been trending lower. The cryptocurrency sell-off known as crypto winter has resulted in growing businesses shutting down and the overall market cap decimated. Potential thaw with prospects for crypto market recovery. According to data from DappRadar, crypto wallet activity increased by almost 7% in October compared to September.

The blockchain data company’s unique active wallet metric averaged more than two million over the past month. Additionally, institutional companies have invested significantly in blockchain technology as retail investors dumped cryptocurrencies.

Though badly hit by the recession, two companies appear to be emerging over the next year. Despite mixed results, Wall Street analysts seem bullish on Robinhood Markets and Coinbase Global.

Emergent Prospects for Robinhood and Coinbase

After meeting with Robinhood CEO Vlad Teneve and CFO Jason Warnick, one analyst expressed confidence in their announcements. In addition to products like a self-custody crypto wallet and a retirement account, he highlighted improvements to Robinhood Gold, the platform’s subscription. Service. An upcoming feature will enable subscriber balances with higher-yielding deposit options. Another analyst was like Coinbase’s service and subscription elements, highlighting revenue growth in the company’s segments.

Their confidence has also been boosted by Coinbase’s “stable revenue and healthy metrics,” including a solid user base and assets under management. An increase sometime in 2024.

Higher Interest Income

Meanwhile, an additional feature of this year’s turbulent economic swings may have been a boon to these companies. The Federal Reserve and other central banks have aggressively raised interest rates to control runaway inflation. Higher interest rates pressure companies with higher borrowing costs, and Robinhood and Coinbase see revenue from interest-based products rise.

Through its subscription service, Robinhood allocates eligible customers at very competitive rates to allow them to make more significant investments. Although cheaper than average, interest rates on these loans have resulted in higher revenue due to rate hikes by the Federal Reserve. In part, Coinbase earns interest from some of the products it offers to its customers. For one thing, interest rates on bitcoin-backed loans to customers have risen. In addition, interest rates on USD Coin (USDC) reserves have also increased.

Although inflation has caused retailers to abandon risky assets like cryptocurrencies, rising interest rates appear to be supporting trading platforms. Analysts expect net interest income at Robinhood to rise 65%. Meanwhile, Refinitiv’s IBES data expect Coinbase’s revenue from subscriptions and services, including interest income, to grow 28%.

Share to Social Media

Recent Articles

Join Our Newsletter