Following the introduction of multiple spot Bitcoin exchange-traded funds (ETFs) in January, Coinbase, the leading US-based cryptocurrency exchange, has experienced a surge in its market share.

As a response, Goldman Sachs analysts have upgraded their rating on Coinbase shares from selling to neutral and adjusted their price target to $282. This upgrade reflects the significant growth in crypto prices and Coinbase's daily volumes, which have reached levels not seen since 2021, resulting in a 48% increase in revenue estimates since early February.

This change in rating mirrors the evolving landscape of the crypto market and its impact on Coinbase's performance. Previously, JPMorgan analysts downgraded Coinbase's stock from Neutral to Underweight due to market pressures and potential revenue shifts away from Coinbase following the launch of new ETFs.

Despite technical challenges and regulatory hurdles, Coinbase's market dominance has surged from 47% to 60% in the last three months, driven by increased user engagement and app rankings.

However, Coinbase has faced issues such as users encountering zero balances in their accounts, attributed by CEO Brian Armstrong to a spike in traffic caused by Bitcoin's rise to new record highs.