Coinbase, the largest American cryptocurrency exchange platform went public through direct listing on Wednesday with a record $100 billion valuation.
The listing, which makes Coinbase the most valuable exchange in the world, has come with a wave of noise, and for a company that is little over 10 years old, it is expected. It has also propelled gains for other cryptocurrencies.
Leading cryptocurrency, bitcoin rose above $64,000, a record new high during the week. Dogecoin, which originally started as an internet parody more than seven years ago, has surged more than 85% in the last 24 hours and is trading at $0.13, putting Its market cap at over $17 billion.
The cryptocurrency market has continued on its frenzy trajectory, buoyed by growing institutional acceptance and recent investors’ welcoming attitude.
Bitcoin hit $1tr in market capitalization in just 12 years, faster than the biggest names in Silicon Valley and Wall Street. It took Microsoft about 44 years to hit a valuation of $1 trillion. Apple took 42 years, while Amazon took 24 years and Google took 21 years.
Coinbase, whose users primarily deal in bitcoin and ethereum, reported last week that its revenue soared 847% in the first quarter to $1.8 billion, and that it now has 56 million verified users. Analysts said its $100 billion listing marks a watershed moment for cryptocurrency.
“Coinbase is the watershed moment in terms of legitimizing some valuations you see in crypto, particularly around DEXs who have a tiny fraction of the amount of employees and opex [operating expenses] that a Coinbase or ICE has. Crypto is an asset with incredible volume and diversity, which is poised to grow even more. Coinbase showcases how profitable exposure to this market can be. Also, I expect a wave of M&A and VC activity on the heels of this as private investors will be asking their fund managers for exposure to this space,” said Ben Lilly, co-founder of Jarvis Labs.
The exchange platform’s shares opened at $381 today, a change of around 52% percent. It has moved above $400 as of the time of filing this report, putting its value above $105 billion, larger than the NYSE and Nasdaq combined.
With its 56 million verified users, the company hosts 6.1 million monthly transacting users, according to its first quarter financial statement, released this week. With its huge user-base, Coinbase estimates that it scored between $730 million and $800 million in profit on revenues of $1.8 billion during the first quarter of the year.
With the gain recorded across the cryptocurrency market during the week of Coinbase listing, analysts believe the craze is just getting started.
“Digital currency and the digital dollar, those are all things that the government should actively be pursuing. The ship has sailed in crypto. Crypto is a phenomenon, whether or not anybody wants it to be or not. It’s here to stay,” Coinbase Chief Operating Officer Emilie Choi said in an interview with Protocol on Wednesday morning.
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said he believes the Coinbase “IPO” could boost Bitcoin to $70,000.
“Coinbase IPO May Boost Bitcoin to $70,000, Like Tesla to $60,000 — The lowest 30-day volatility since October indicates Bitcoin is ripe to exit its cage and bull-market continuation is favored for the next $10,000 move. Similar to Tesla’s equity-wealth allocation to Bitcoin..”
While the fear of volatility remains, Coinbase’s historic listing has made a statement: cryptocurrency can no longer be taken for granted.