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

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Block, Inc., the company behind Square and other fintech ventures, has surpassed Coinbase in market capitalization for the first time since March. This change comes as Coinbase shares fell amid falling crypto prices, marking its worst week of the year so far.

The shift in market cap positioning reflects the broader volatility of the crypto sector. Coinbase previously outperformed Block Inc. in market capitalization 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 position on Coinbase from Under Weight to Equal Weight. Analysts cited a maturing regulatory environment, steady diversification and strong industry leadership as factors pointing to the maturing business with reliable revenue. However, Barclays also revised its price forecast for Coinbase shares to $169 from $206.

Coinbase stock’s performance has been turbulent, hitting a year-to-date high of $279.71 on March 25 before closing at $147.35 on Friday. In early August, Coinbase followed MicroStrategy down 15 to 18 percent pre-market as global markets reacted to disappointing U.S. economic data and escalating tensions in the Middle East.

The company recently secured 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 asked the SEC to withdraw language from its rules on decentralized exchanges, calling the actions irrational. In August, Coinbase hinted at the launch of a possible packaged Bitcoin product that could reshape the decentralized financial market by introducing a major player such as the firm.

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