Coinbase’s Market Cap Soars, Uniswap Remains Steady

Despite the surging global equities and cryptocurrencies, the market capitalization of decentralized finance (DeFi) darling Uniswap has remained stagnant, in stark contrast to the exponential growth seen by Coinbase. While Coinbase’s shares soared by over 213% since the beginning of the year, driven by BlackRock’s unexpected filing for a bitcoin exchange-traded fund, Uniswap’s market cap has not experienced significant fluctuations, holding steady at approximately $4 billion throughout the year.

Coinbase's market cap relative to Uniswap surges https://t.co/wcMOkHyMA3

— The Block (@TheBlock__) July 15, 2023

Coinbase’s Bullish Run

In contrast, Coinbase’s market cap has skyrocketed from over $7 billion at the start of the year to nearly $25 billion as of Friday, indicating a substantial divergence in their market values. The Block’s data dashboard reveals that the ratio between the market caps of the two firms has surged, reaching a yearly high of 6.2 on July 13.

Coinbase’s remarkable rally further intensified on Thursday, following a judge’s ruling that Ripple Lab’s sales of XRP on exchanges did not violate securities laws. In response to this favourable development, Coinbase surged over 20% alongside the broader crypto market. Private investment firm WedBush responded to the positive ruling by raising its price target on Coinbase to $110. The ruling’s suggestion that XRP sales on public exchanges did not involve securities was particularly encouraging to WedBush. Consequently, the firm revised its price target from $70 to an impressive $120, reflecting strong confidence in Coinbase’s growth prospects.

As the crypto market continues to evolve, Coinbase’s upward trajectory highlights its resilience and ability to capitalize on favourable developments, propelling it to new heights. On the other hand, Uniswap’s market cap stability may indicate the need for further catalysts to trigger significant valuation changes.

Investors and market observers are closely watching both Coinbase and Uniswap to gauge how they adapt to the rapidly changing crypto landscape. With the decentralized finance sector gaining momentum and regulations shaping the crypto industry, future developments in the market will likely play a crucial role in determining the trajectory of these two prominent players.