JPMorgan has flipped bullish on Coinbase — and the reason isn’t trading volume, ETFs, or Bitcoin. The bank now believes Coinbase’s Base network could represent a $34 billion opportunity, calling the Layer-2 ecosystem a potential breakout revenue machine for the company. This marks one of the strongest signals yet that Wall Street is finally taking Web3 infrastructure seriously, not just crypto prices. Base: The “Hidden Engine” Behind Coinbase’s Future According to JPMorgan’s note, Base could become a massive fee-driven ecosystem, earning revenue from: on-chain transactions, developer activity, DeFi and app expansion, and future tokenized markets. In other words, Coinbase could profit even when markets are flat, as long as Base keeps growing. JPMorgan’s thesis centers on one core belief: Web3 will reward the platforms that own the rails, not just the traffic. Base, as a Coinbase-controlled Layer-2, puts the company in a position to earn recurring fees from every transaction, every app, and every on-chain product built inside its ecosystem. Unlike Coinbase’s exchange business — which rises and falls with market cycles — Base represents ongoing, compounding network revenue . And in an environment where developers are fleeing expensive Layer-1 chains for cheaper alternatives, Base’s low-cost model gives Coinbase a powerful competitive edge. If Coinbase moves from “exchange revenue” to “infrastructure revenue,” its business becomes: more scalable, more predictable, and much more valuable. And that’s exactly what JPMorgan is betting on.