Expect good Q3 volumes from Coinbase, needs to diversify products - Needham analyst

Needam & Co. Senior Analyst John Todaro predicted Friday that Coinbase (NASDAQ:COIN) will report strong Q3 volumes as interest rises in so-called "Layer-1" cryptos that compete with Ethereum (ETH-USD). However, Todaro told CNBC that the company needs to continue the process of revenue diversification beyond its exchange trading in order to spark sustained growth in its stock price. "That's what I think is really going to get this stock going," said Todaro, who's Needham's vice president of cryptoasset and blockchain research. Specifically, the expert pointed to COIN's efforts to increase its staking business and its trading in derivatives as laudable examples of expanding its offerings. As to the crypto market in general, Todaro said interest has broadened beyond Bitcoin (BTC-USD) and Ethereum (ETH-USD) and into the space's less well-known players. He sees a particular following for Layer-1 competitors to Ethereum like Solana (SOL-USD) and Avalanche, the latter of which which