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

DUBAI, United Arab Emirates, Jul. 4, 2025 — 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

//ENDS