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Coinbase Global Inc. (NASDAQ: COIN) shares achieved a market valuation of  $85.8 billion after its initial public offering (IPO) on Wednesday.

The shares of Coinbase opened at $381 and instantly surged to $429.54. However, hours later, its stock price plummeted to $310. COIN stock ended its first day of trading at $328.28 per share.

During its market debut, Coinbase was among the most actively traded companies with a market cap of more than $25 billion. Almost 40 million COIN shares changed hands. The cryptocurrency exchange's employees and shareholders were among those who immediately sold shares following its public offering.

The exchange was founded in 2012 to ease the buying/selling of Bitcoin (BTC). Consequently, after the digital currencies market soared to all-time high levels, Coinbase rose to fame as the top crypto exchange in the United States. This followed the large endorsement of Bitcoin from major financial institutions and billionaires. Currently, Coinbase has more than 56 million users.

Coinbase IPO regarded as a "watershed" moment for the cryptocurrency industry

Major companies went public over the past six months. Palantir, Airbnb, and Roblox fetched market caps between $45 million and $106 billion during their IPO.

Coinbase's IPO was a remarkable event that caught the attention of the world as it comes as the prices of Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies continue to increase.

According to data from the exchange, BTC and ETH surged 800% and 1,300% respectively over the past year. The historic rally of both cryptocurrencies helped Coinbase grew its user base and revenue.

Last week, the cryptocurrency exchange reported that its revenue climbed 844% to $1.8 billion in the first quarter of this year. In the same period a year ago, its revenue was $190.6 million.

Wall Street analysts regarded the Coinbase IPO as a ^watershed" moment for the cryptocurrency industry.

Dan Ives, a tech analyst at Wedbush Securities, said it was “potentially a watershed event for the crypto industry and will be something the Street will be laser-focused on to gauge investor appetite."

Leeor Shimron, an analyst at FundStrat Global Advisors shared Ives' view on the Coinbase IPO.

Meanwhile, BTIG analysts were optimistic regarding the future of Coinbase. They recommended a "buy" rating and gave a price target of $500 for CION shares.

In a note to clients, BTIG analysts wrote, “We believe COIN, the most popular consumer-facing cryptocurrency exchange in the U.S., is positioned to be a primary beneficiary of the increased adoption of Bitcoin and other digital assets as it continues to scale in the U.S. and internationally."