Coinbase Faces Potential Loss of Stablecoin Rewards, Projected Revenue of $1.3 Billion by 2025
- Legislative Risk: Coinbase may withdraw support for a key digital asset market structure bill due to proposed restrictions on stablecoin rewards, which could directly impact user attraction to USDC and subsequently affect the company's revenue model.
- Revenue Dependency: Coinbase shares interest income from USDC reserves with Circle Internet Financial, a crucial mechanism during market downturns, with projected revenue reaching approximately $1.3 billion by 2025, highlighting its reliance on stablecoin rewards.
- Market Dynamics Shift: If legislative restrictions are enacted, users may migrate their USDC holdings to other platforms that can still offer rewards, altering the supply and demand dynamics of USDC and impacting Coinbase's competitive position in the market.
- International Competitive Pressure: Coinbase's policy officer emphasizes that stablecoin rewards are vital for maintaining dollar competitiveness, especially as China plans to offer interest on its digital yuan, potentially putting the U.S. at a disadvantage in the digital currency space.
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Technical Analysis for STABLE
Technical Sentiment Analysis for (STABLE) As of , (STABLE) is exhibiting a Strong buy technical sentiment. Our proprietary analysis, which aggregates 6 technical signals, shows that 5 indicators are flashing buy, while 1 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for STABLE stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, STABLE is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
(STABLE) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | -0.00245 | 0.00654 | 0.0147 | 0.0237 | 0.0319 | 0.0409 | 0.0491 |
| Fibonacci | 0.00654 | 0.0131 | 0.0172 | 0.0237 | 0.0303 | 0.0343 | 0.0409 |
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