Crypto Stocks Stabilize Amidst Bullish Outlook for Derivatives and Stablecoins

Crypto-linked equities have been experiencing a steep decline in recent months, but market analysis suggests that they may be nearing a turning point. Bernstein's research indicates that the stocks of Coinbase, Robinhood, and Figure Technologies are showing signs of stabilization.

The analysts at Bernstein predict that revenue and earnings growth for these companies will continue through 2027, driven by the increasing use of derivatives and stablecoins. Derivatives could make up as much as 14% of Coinbase's trading income by 2027, while stablecoin fees are expected to cover 19% of total revenue next year.

Figure Technologies' tokenization platform is also expected to experience significant growth, with consumer-loan marketplace volumes projected to reach $16.5 billion in 2027. Robinhood's forecast hinges on fresh revenue sources, including prediction markets that could make up about 10% of total revenue in the coming year.