Alongside Bitcoin’s brief jump past $100,000 last week, heightened volatility in the asset’s price and an altcoin boom are driving retail traders back to Coinbase, according to one analyst.

In a Monday note, investment bank and asset management firm Needham & Co.’s John Todaro issued a new price target for Coinbase, raising the key mark to $420 from $375 while maintaining a “buy” rating. In the note, the equity analyst pointed to Coinbase’s December trading volumes, which “are on track for their best month ever.”

In October, Coinbase disclosed $183 billion in total trading volume for Q3, an 18% drop quarter-over-quarter. The San Francisco-based firm attributed the stat to a tepid Bitcoin market, trading below its March high of $73,800, and unfavorable economic conditions this summer.

In his note, Todaro penciled in higher expectations for Coinbase’s total trading volume in Q4, lifting his estimate to $435 billion from $243 billion. If proven true, that would equate to a 137% increase in total trading volume within the span of just three months.

The ratio bet

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Author: André Beganski