Bybit, the world's second-largest cryptocurrency exchange, has published a new report that examines Coinbase's prospects and the role of stablecoins in the crypto market.
Key Findings of the Report
The Bybit report shows that Coinbase trades at high valuations, with a P/E of 61.55. This valuation is explained by the company's unique position in blockchain infrastructure and diverse revenue streams. Coinbase's significant outperformance against Bitcoin also highlights the recognition of its value by investors.
Impact of Stablecoins on the Market
Circle's IPO, which far exceeded analysts' estimates, marked the rise of the stablecoin USDC. Coinbase, as a participant in this growth through a profit-sharing agreement, gains revenue from this direction with minimal operational costs. This allows Coinbase to draw sustainable income from the increasing use of digital assets.
Regulatory Changes and Their Significance
The report notes that a favorable regulatory environment enables Coinbase to enter the cryptocurrency derivatives market, which could significantly enhance its revenue. The migration of traders to regulated platforms boosts Coinbase's competitiveness in this segment.
Thus, Coinbase faces numerous growth opportunities, but its success continues to depend on market sentiment and regulatory changes.
