Bank of America upgraded Coinbase Global shares to a Buy rating, noting that the sharp drop in the stock does not reflect the company’s underlying fundamentals. Analysts say the nearly 40% decline from summer highs was driven by a broader crypto market correction rather than internal issues at the platform.

In its report, BofA highlighted Coinbase’s strengthening position through product expansion and a growing addressable market. The company is actively developing stock and ETF trading and entering prediction markets, gradually evolving from a crypto exchange into a diversified financial ecosystem.

While some banks, including Barclays, remain cautious due to risks tied to lower trading volumes and ongoing volatility in digital asset prices, overall analyst sentiment stays positive. Most experts see solid medium-term growth potential for Coinbase and view current levels as attractive for long-term investors.