BlockBeats News, July 22, Benchmark lowered its second-quarter performance expectations before Coinbase's upcoming earnings report, citing weak cryptocurrency market trading activity, but still maintaining a "Buy" rating and a $270 price target. Based on Coinbase's Wednesday stock price of around $172, this target price represents approximately 57% upside potential.

Benchmark analyst Mark Palmer reduced Coinbase's second-quarter revenue expectations from $15.1 billion to $13.8 billion and lowered the full-year 2026 revenue forecast from $63.3 billion to $60 billion. The centralized exchange platform's spot trading volume declined by around 28% in the second quarter, with the cryptocurrency market's total market capitalization dropping by approximately 13%. The firm expects Coinbase's trading revenue to decline by over 5%.

However, there have been initial signs of market stabilization in June, with spot trading volume climbing back above $1 trillion for the first time since March, partially alleviating the second-quarter's weak performance.

Benchmark believes that if the "CLARITY Act" is ultimately passed, it could serve as a more significant share price catalyst than quarterly performance, with Coinbase potentially being one of the key beneficiaries of the act. Trump has previously agreed to relevant ethical terms, clearing a significant hurdle for the bill's advancement.