Coinbase Stock Bears Miss Crucial On-Chain Metric

The stock price of Coinbase Global has been under pressure in recent times due to several factors. However, according to an analysis by Trefis, there is one crucial metric that bears are missing when evaluating the company's performance.

Trefis analyzed the on-chain activity of Coinbase and found a significant correlation between the company's stock price and its on-chain metrics. The analysis reveals that the stock price has been closely tied to the growth in Bitcoin's network value to transacting parties (NVT) ratio, which indicates the relative value of Bitcoin versus the revenue generated by Coinbase.

The analysis also shows that when the NVT ratio is low, the stock price tends to be high, and vice versa. This suggests that investors are using on-chain metrics as a proxy for evaluating the company's performance and making investment decisions.

Trefis notes that this on-chain engine has been a key driver of Coinbase's stock price, and bears may be missing out on this crucial aspect when building their cases against the company.