** Crypto exchange Coinbase's COIN.O stock faces the biggest short-term risk from rival Binance's potential re-entry into the U.S., analysts at brokerage firm William Blair say

** With a domestic market share of more than 50%, COIN has emerged as the exchange of choice for U.S. users

** The company also snapped up users after Binance retreated following a clash with regulators

** However, with the Securities and Exchange Commission's lawsuit against Binance now dismissed, the exchange may seek to re-enter the U.S. market, analysts say

** Still, COIN is the best option for investors "to participate in a crypto renaissance" — William Blair

** Brokerage begins coverage with an "outperform" rating; says stock valuation poised to grow and investors should buy the dips aggressively

** YTD, COIN has gained 2.7%

(Reporting by Niket Nishant in Bengaluru)

((Niket.Nishant@thomsonreuters.com))