12:52 PM EDT, 07/14/2025 (MT Newswires) -- Coinbase Global ( COIN ) faces an "unfavorable" setup ahead of its second-quarter results due to weak trading volume, though the cryptocurrency exchange's long-term prospects appear positive amid continued blockchain adoption, Oppenheimer said in a note e-mailed Monday.

The brokerage now estimates the company's second-quarter trading volume to be at $220 billion, down from its previous projection of $230 billion. The current consensus on FactSet is for $285.4 billion. Oppenheimer said its latest outlook represents sequential and annual declines of 44% and 3%, respectively. Average daily volume continued to fall throughout the three-month period ended June, as tariff-related concerns weighed on investors' willingness to partake in volatile cryptocurrency trading, according to the note.

Oppenheimer expects Coinbase's second-quarter revenue of $1.42 billion versus Wall Street's views for $1.67 billion, it said. The company is scheduled to release its latest quarterly results at the end of this month.

"The setup for (Coinbase) going into the (second-quarter) print appears to be unfavorable," Oppenheimer analysts Owen Lau and Guru Sidaarth said. "That said, the buy side seems to be well aware of this weak print and downward earnings-estimate revision."

Coinbase shares have jumped more than 100% since the first quarter, with the brokerage attributing the performance to the stock's recent inclusion in the S&P 500 benchmark equity index, among other factors. Increasing regulatory clarity and the White House's pro-crypto policies have continued to drive blockchain adoption, according to the note.

Trading volume improved in some days this month in light of the US House Financial Services Committee's crypto week starting Monday, the brokerage said. During this week, the House of Representatives is expected to consider the GENIUS Act, which would require stablecoins to maintain 100% reserve backing with short-term US Treasuries, and the CLARITY Act, which aims to establish a federal regulatory framework for digital assets, among other bills, according to Oppenheimer.

US derivatives and international exchange notional values were more resilient, compared with US spot trading volume in the second quarter, the analysts said. The brokerage expects these to provide "meaningful additions" to Coinbase in the longer term, even though their revenue contribution to the company is still not material at the moment.

"We believe a more attractive entry point could happen after the print," Oppenheimer said. The brokerage raised its price target on the Coinbase stock to $417 from $395, with an outperform rating. The company's shares were up 1.6% in Monday afternoon trade.

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