Needham & Firm is watching a possible resurgence in meme coin exercise and believes it may increase buying and selling quantity on cryptocurrency alternate Coinbase (NASDAQ:).

In a be aware on Wednesday, the agency highlighted a big drop in COIN buying and selling volumes in Could, which it attributed to a scarcity of clear route within the cryptocurrency market general.

Nonetheless, Needham stays bullish on Coinbase over the approaching months, pointing to a number of optimistic developments, together with the return of Roaring Kitty.

It is a reference to Keith Gill, the favored retail investor who was instrumental in driving the meme inventory growth in 2021. Needham believes Gill's return may reignite curiosity in meme cash and increase buying and selling volumes on Coinbase.

Moreover, they level out that the regulatory surroundings for cryptocurrencies is enhancing, as politicians are prone to be extra favorable in the direction of the trade, particularly throughout election years.

Lastly, in addition they imagine that the attainable approval of an Ethereum ETF may very well be a optimistic, which may additional appeal to retail buyers to the cryptocurrency trade.

Needham highlighted the significance of memecoins within the crypto house, highlighting the latest success of Phantom, a crypto pockets identified for storing memecoins. Needham argues that the meme-based crypto financial system will grow to be a pillar of the house, and that Coinbase would profit from increasing its choices on this house.

Regardless of the decline in buying and selling quantity in Could, Needham expressed optimism about Coinbase: They imagine {that a} mixture of potential meme coin exercise, a extra favorable regulatory surroundings, and the opportunity of an Ethereum ETF may convey retail buyers again to the platform and increase general buying and selling quantity.