Coinbase and Circle Shares Positioned for Crypto Recovery

Analysts at William Blair believe that Coinbase shares (COIN) are poised for growth as estimates stabilize. They argue that the company's stock, which has gained 31% since July 14, offers an attractive entry point for investors despite depressed spot trading volumes.

The analysts expect a flurry of regulatory rulemaking following the Senate's failure to advance the Clarity Act to improve sentiment and support Coinbase heading into 2027. This includes the Securities and Exchange Commission's recent tokenized-equity trading exemption, which they see as a positive development for the company.

They also note that crypto market activity is recovering, citing bitcoin's rally, growing use of crypto as lending collateral, and the expansion of tokenized real-world assets, whose market cap has risen to $39 billion from $26 billion at the end of 2025. Additionally, Coinbase's newer businesses are becoming increasingly important, with retail derivatives and prediction markets generating significant revenue.

As for Circle (CRCL), analysts expect USDC growth to drive the next leg higher in valuation. They argue that a potential rival stablecoin poses little threat to USDC's position, and that Circle's longer-term value lies in building a global stablecoin payments and transaction network rather than relying on reserve income.