Coinbase (NASDAQ:COIN) stock has had a bumpy month, but it makes sense.
Amid the scare of a new Covid variant, cryptocurrencies are crashing and investors are losing money. Bitcoin (CCC:BTC-USD) is 20% down from the all-time high it hit earlier this month.
COIN stock is down from $357 to $315 over the last few weeks. Several factors have led to a dip in the stock but it is temporary.
Until we have more information about the Covid variant, it is hard to say whether the decline in crypto assets will continue or not. However, COIN stock has been consistently rising over the past six months.
It went from $247 in May to the highs of $357 in November. Currently, it is trading much lower than the all-time high of $429.
I believe COIN stock is one for the long term as long as no major regulations affect the crypto industry. The current dip is temporary and I consider it a great chance to buy the stock.
NFTs Will Be Huge
Coinbase is soon to launch an NFT marketplace on its network. Around 2.5 million people have already signed up for the updates via email and management believes that NFTs will be a bigger business for the company than crypto trading.
NFTs are new to the market and there is a lot of curiosity surrounding the same. Coinbase could offer a quick and hassle-free investment platform to users and could also allow creators to build more use cases.
The NFT platform will work as a catalyst for the company and it will have an impact on the bottom line.
Its unique features like enabling users to showcase the NFTs on the site and letting others follow the profile will work for young investors with many social connections.
It will also help get the word out for the company and attract users to the platform.
Solid Acquisitions and Partnerships
The company has been making strong moves in the industry in the form of partnerships and acquisitions. Adidas Originals recently announced its partnership with Coinbase.
There are no further details about the tie-up but there is a lot of enthusiasm amongst crypto traders. The company has also acquired Mobile Wallet Company BRD. It has a user base of 10 million and they will have an option to migrate to Coin Wallet next year.
Coinbase added that BRD will bring expertise in self custody for the crypto wallets.
Additionally, Coinbase has acquired Agara, an Indian AI customer support company for more than $40 million. It has also acquired Zabo, a blockchain infrastructure firm, and Skew, a crypto data analytics company.
The company is leaving no stone unturned to expand its business and to offer high security to the users. With each acquisition and partnership, Coinbase has only strengthened its position in the industry and will continue to do so.
The Bottom Line on COIN Stock
Do not judge the company based on the current dip in stock. This dip is temporary and is driven by the investor sentiment due to the new Covid variant.
However, COIN stock is the one for the long term. With growing awareness about the crypto industry, the platform will continue to attract more users and drive trading volumes.
Once the NFT platform is ready, the company will see a rise in revenue and users. A crypto-asset frenzy can take the stock higher in no time. Own COIN stock for the long-term potential and forget the temporary dip.
With the great acceptance of bitcoin across countries, the platform will see a rise in users and trading volumes. A period of low volatility will lead to higher transactions and a rise in commissions. Coinbase is building a solid position in the industry and could be the biggest player in 2022.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.
