While Coinbase Global Inc.'s (NASDAQ:COIN) trading volumes have decelerated significantly, investors seem to be underestimating the potential of the company's non-trading revenue streams, according to Rosenblatt Securities.

The Coinbase Global Analyst: Analyst Chris Brendler on Wednesday reiterated a Buy rating and price target of $305.

The Coinbase Global Thesis: Recent trends indicate "a material slowdown" in the company's trading volumes, with the daily average in March down 20% month-on-month and 30% below January's daily average, Brendler said in the note.

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"If March's lackluster pace continues throughout 2Q25, we estimate COIN trading volume would be $335B, about 4% below our current $350B estimate," the analyst wrote. He added, however, that this weakness is unlikely to continue given positive tailwinds from the U.S. government's change in stance regarding cryptocurrencies.

Although trading volumes have slowed, Coinbase Global continues to gain market share, Brendler said.

Stablecoin growth has accelerated to reach a record high in March, with the growth being led by USDC, which is up 36% year to date versus only 5% for Tether. USDC's market share gains are likely to continue and Coinbase Global's 50% ownership of USDC is "an underappreciated positive," he wrote.

COIN Price Action: Shares of Coinbase Global had declined by 2.8% to $198.37 at the time of publication on Wednesday.

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