Coinbase's 42% Year-to-Date Outperformance Signals Infrastructure Value

Bybit, the world’s second-largest cryptocurrency exchange, has released a new report that delves into the growth potential of Coinbase Global Inc. (NASDAQ: COIN). The report highlights that despite trading at premium valuations, Coinbase is positioned for continued top-line expansion due to positive regulatory momentum, institutional acceptance, and strategic product launches.

The report follows a recent analysis that tracked the rise of Circle, a stablecoin company whose initial public offering exceeded traditional analysts’ valuations. Key findings from the report include the justification of Coinbase’s premium valuations, the economic benefits of stablecoin infrastructure, and the regulatory breakthroughs that deepen Coinbase’s compliance advantage.

Coinbase currently trades at a forward P/E ratio of 61.55 and a P/S ratio of 14.11, significantly above traditional tech peers. However, 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.

Circle’s 7x IPO illuminated the true value of stablecoin infrastructure, with Coinbase emerging as a significant 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.

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.

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.