Block Inc. overtakes Coinbase in market value

Block Inc., the company behind fintech ventures such as Square, Cash App, TBD, and Tidal, has surpassed Coinbase in market capitalisation for the first time since March.

This shift reflects the broader volatility and decline in the crypto sector, which has seen Coinbase's stock drop amid falling cryptocurrency prices.

It marks the worst week of the year for Coinbase, reversing the trend where it had previously overtaken Block Inc. earlier this year.

Investment bank Barclays has responded to this market shift by adjusting its rating on Coinbase from Under Weight to Equal Weight.

Barclays cited a maturing regulatory environment, steady diversification, and strong industry leadership as signs that Coinbase is becoming a more reliable business with stable revenues.

However, the bank has revised its price forecast for Coinbase’s shares, lowering it from $206 to $169.

Coinbase’s stock has faced significant turbulence in recent months.

It reached a high of $279.71 in March but closed at $147.35 this past Friday.

In early August, Coinbase's shares, like those of MicroStrategy, fell between 15 to 18% in pre-market trading due to disappointing U.S. economic data and escalating geopolitical tensions in the Middle East.

Despite these challenges, Coinbase achieved a minor legal victory when a New York judge ordered the SEC to provide access to specific documents related to ongoing litigation.

However, the exchange’s efforts to subpoena SEC Chair Gary Gensler were unsuccessful.

Additionally, Coinbase has recently urged the SEC to retract certain language from its rules on decentralised exchanges, deeming it irrational.

Amid these developments, Coinbase has hinted at launching a wrapped Bitcoin (CRYPTO:BTC) product, which could potentially reshape the decentralised finance market by introducing a significant player like Coinbase.

However, the company continues to face an unpredictable market environment as it navigates regulatory challenges and volatile crypto markets.