Analysts warn Coinbase stock approaches overvaluation despite being a rare high-quality public crypto play. Its 84% two-month surge dramatically outpaces Bitcoin’s 14% gain and actual trading volume growth—the core revenue metric—creating a concerning divergence.
10x Research identifies a nearing +30% overvaluation threshold that historically precedes reversals. While acknowledging Coinbase’s operational strengths, they note the premium invites underperformance risk relative to crypto assets like Bitcoin itself.
This valuation disconnect prompts tactical recommendations like shorting COIN against long BTC positions. The concern centers on unsustainable momentum disconnected from fundamental metrics, creating potential for sharp correction if market sentiment shifts.
