Needham & Company updated its price target for Coinbase (NASDAQ:COIN) raising it from $120 to $160 per share, while maintaining a Buy rating on the stock. As a consequence, the company’s shares rose more than 3% intra-day today.

The analysts observed that retail engagement in the crypto space is notably lower than in previous years. Despite recent gains in crypto prices, this engagement remains relatively subdued. They emphasized that Coinbase represents an attractive investment opportunity in the expanding universe of crypto assets. According to the analysis, the current level of retail interest in cryptocurrencies is closer to disinterest than euphoria, which historically has been a key indicator of the crypto market's cycle stage.

Additionally, the analysts highlighted that website visits to crypto-related sites in October 2023 were lower compared to those in July 2023. This suggests a more cautious approach among retail investors towards cryptocurrencies. However, they also noted that Bitcoin's dominance is near its 2023 highs. This pattern suggests that excess capital has not significantly flowed into alternative cryptocurrencies (alt-coins), a trend that is usually seen in the middle to late stages of the crypto market cycle. This observation might indicate that the market is still in its early stages, with potential for further development and growth.