Block Inc. overtakes Coinbase in market cap as crypto stocks decline

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Block, Inc., the company behind Square and other fintech companies, has surpassed Coinbase in market capitalization for the first time since March. The move comes as Coinbase’s stock has tumbled amid falling cryptocurrency prices, marking its worst week of the year so far.

The change in market cap positioning reflects broader volatility in the cryptocurrency sector. Coinbase had already surpassed Block Inc. in market cap earlier this year, but recent market moves have reversed that trend.

Diversification and maturation of the regulatory environment

Despite the stock’s decline, investment bank Barclays adjusted its stance on Coinbase from Under Weight to Equal Weight. Analysts cited a maturing regulatory environment, continued diversification, and strong industry leadership as factors indicating the company’s maturation with reliable revenue. However, Barclays also downgraded its price forecast for Coinbase shares to $169 from $206.

Coinbase has had a rocky stock performance, hitting a year-to-date high of $279.71 on March 25 before closing at $147.35 on Friday. Earlier in August, Coinbase followed MicroStrategy in falling 15% to 18% in premarket trading as global markets reacted to disappointing U.S. economic data and escalating tensions in the Middle East.

The company recently scored a minor legal victory when a New York judge ordered the SEC to grant Coinbase access to certain documents related to ongoing litigation. However, the exchange’s attempt to subpoena SEC Chairman Gary Gensler failed.

The company also recently urged the SEC to remove certain clauses from its rules on decentralized exchanges, calling the actions irrational. In August, Coinbase hinted at a possible Bitcoin-wrapped product that could potentially reshape the decentralized finance market, introducing a major player like the company.

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