COIN Plunges Almost 20% in Weekly Rout, Its Worst Showing Since September Last Year

Coinbase Suffers Steepest Weekly Drop Since Late 2024 as Traders Rush to Hedge

Shares of Coinbase (NASDAQ: COIN) plunged 19.6% last week to close at $314.69, marking the company’s worst weekly performance since September 2024, according to TradingView data. The decline came on the heels of a weaker-than-expected Q2 earnings report that reignited concerns over the stock’s elevated valuation.

The crypto exchange reported $0.12 in earnings per share for the second quarter, an 88.8% decline compared to the same period last year. Revenue fell to $1.5 billion, missing analyst estimates of $1.59 billion, while EBITDA dropped to $512 million. A sharp 39% quarter-over-quarter decline in transaction revenue weighed heavily on the bottom line.

The weak report confirmed concerns previously raised by crypto research firm 10x, which had warned that COIN’s price rally in Q2 had outpaced its underlying fundamentals. The firm had recommended shorting Coinbase while taking long positions in bitcoin. Investment bank H.C. Wainwright also downgraded the stock from “Buy” to “Sell” in early July, citing valuation risks.

Put Option Demand Surges

The earnings disappointment triggered a spike in demand for downside protection. On Friday, the one-year put-call skew rose to 2.6%—its highest reading since April 2025—according to data from Market Chameleon. That figure reflects a significant premium for put options over calls, suggesting a defensive shift in sentiment among institutional and retail investors alike.

Puts, often used to hedge against further declines, became notably more expensive relative to bullish bets, as traders repositioned amid lingering uncertainty about Coinbase’s growth trajectory.

As macroeconomic risks mount and crypto markets remain fragile, all eyes will be on whether Coinbase can stabilize—or whether more downside lies ahead.