Bybit TradFi x Crypto Report: Regulatory Tailwinds Drive Coinbase Outperformance Despite Premium Valuation

Rhea-AI Summary

Coinbase (NASDAQ:COIN) demonstrates strong market positioning according to Bybit's latest TradFi x Crypto Report. The analysis highlights Coinbase's premium valuations with a forward P/E ratio of 61.55 and P/S ratio of 14.11, justified by its infrastructure leadership in the crypto space.

The report emphasizes four key growth vectors: perpetual futures trading, USDC stablecoin profit-sharing, subscription services, and international expansion. Notably, Coinbase has outperformed Bitcoin by 42% year-to-date and achieved a historic milestone by joining the S&P 500 on May 19, 2025, becoming the first digital asset company in the index.

Positive

• 42% year-to-date outperformance compared to Bitcoin
• Historic inclusion in the S&P 500 index
• 50% profit-sharing agreement with Circle on USDC stablecoin
• Entry into crypto derivatives market through CFTC-compliant perpetual futures
• Multiple revenue growth vectors including international expansion through MiCA licensing

Negative

• Premium valuation with high forward P/E ratio of 61.55
• Performance remains heavily dependent on crypto market sentiment
• Higher risk profile not suitable for investors seeking short-term stability

DUBAI, UAE, July 4, 2025 /PRNewswire/ -- Bybit, the world's second-largest cryptocurrency exchange by trading volume, has released a new Bybit TradFi x Crypto Report looking beyond PEs in evaluating the growth potential of Coinbase Global Inc. (NASDAQ: COIN). While the U.S.-based cryptocurrency exchange trades at premium valuations, positive regulatory momentum, institutional acceptance, and Coinbase's strategic product launches position it for continued top-line expansion.

The latest report follows a recent analysis tracking Circle's ascend, the new stablecoin darling on Wall Street whose initial public offering far exceeded traditional analysts' valuations. 

Key Findings:

• Premium Valuations Justified by Crypto Infrastructure Leadership: COIN currently trades at a forward P/E ratio of 61.55 and P/S ratio of 14.11, significantly above traditional tech peers, yet the company's 42% year-to-date outperformance of BTC signals investor recognition of its infrastructure value. The premium reflects Coinbase's unique position as blockchain economy infrastructure, with diversified revenue streams positioning it to capture value from institutional adoption. Traditional valuation metrics may be inadequate for crypto infrastructure plays, as these companies benefit from network effects and regulatory moats that don't exist in conventional fintech.
• Stablecoin Economics Unlock Hidden Value Proposition: Circle's 7x IPO illuminated the true value of stablecoin infrastructure, with Coinbase emerging as the bigger beneficiary despite being a silent partner. Through its 50% profit-sharing agreement with Circle on USDC, Coinbase captures significant economic value from the stablecoin boom while bearing minimal operational costs. This capital-light revenue stream scales with digital asset adoption, providing sustainable income independent of trading volume volatility. As USDC expands and regulatory clarity improves, this positions Coinbase to benefit from the broader shift toward blockchain-based payments and settlement systems.
• Regulatory Breakthrough Deepens Coinbase's Compliance Advantage: The favorable regulatory environment has unlocked Coinbase's entry into the most lucrative crypto derivatives market through CFTC-compliant perpetual futures for BTC and ETH. Perpetual futures represent over 90% of global crypto derivatives volume—a market previously dominated by offshore exchanges due to regulatory constraints. This strategic breakthrough could materially enhance Coinbase's revenue base as US traders migrate from unregulated platforms to domestic alternatives, positioning Coinbase to capture premium fees while expanding its addressable market.

Four Growth Vectors Converging Under Regulatory Tailwinds

The analysis identifies multiple expansion channels being unlocked simultaneously: perpetual futures trading, enhanced stablecoin monetization through USDC profit-sharing, diversified subscription services, and international expansion through MiCA licensing in the EU and new market entry in Asia and Latin America. The convergence of these growth vectors under improving regulatory conditions creates a compounding effect that traditional valuation models may underestimate.

These parallel initiatives reinforce each other, creating multiple paths to revenue growth even if individual segments underperform expectations.

Coinbase's historic inclusion in the S&P 500 on May 19, 2025—becoming the first digital asset player to join the index—marks a watershed moment validating crypto's integration into mainstream finance. The report notes that COIN's performance remains closely tied to crypto market sentiment and regulatory developments, making it more suitable for investors with longer time horizons and higher risk tolerance rather than those seeking short-term stability.

Disclaimer: Past performance does not guarantee future results. Nothing contained herein constitutes investment advice. Investors should conduct their own research and consider their risk tolerance before making investment decisions.

#Bybit / #TheCryptoArk /#BybitResearch

About Bybit

Bybit is the world's second-largest cryptocurrency exchange by trading volume, serving a global community of over 70 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.

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FAQ

What is Coinbase's current valuation according to Bybit's 2025 report?

According to Bybit's report, Coinbase trades at a forward P/E ratio of 61.55 and P/S ratio of 14.11, which are premium valuations compared to traditional tech peers.

When did Coinbase (COIN) join the S&P 500 index?

Coinbase joined the S&P 500 index on May 19, 2025, becoming the first digital asset company to be included in the index.

How has Coinbase stock performed compared to Bitcoin in 2025?

Coinbase has outperformed Bitcoin by 42% year-to-date, indicating strong investor confidence in its infrastructure value.

What are the main growth drivers for Coinbase according to Bybit's analysis?

The main growth drivers are perpetual futures trading, USDC stablecoin profit-sharing, subscription services, and international expansion through MiCA licensing in the EU and new markets in Asia and Latin America.

What is Coinbase's relationship with USDC stablecoin?

Coinbase has a 50% profit-sharing agreement with Circle on USDC, providing a capital-light revenue stream that scales with digital asset adoption and is independent of trading volume volatility.