Coinbase stock has had a strong year despite the wider crypto industry’s struggles. It is up 141% year-to-date, significantly outperforming both Bitcoin (77%) and the Nasdaq (31%). However, it remains 76% below its IPO price from April 2021, and its market cap has dropped to $19 billion.

The crypto sector has suffered due to the harsh macro climate and several startling collapses. The UST stablecoin death spiral and the demise of FTX in the Bahamas were particularly damaging, and Coinbase shareholders have felt the effects of both.

The timing of Coinbase’s IPO was particularly unfortunate, as it coincided with the start of the crypto bear market. Since the start of 2022, Coinbase stock has also underperformed Bitcoin.

Regulatory issues have further contributed to the stock’s struggles. Coinbase was sued in June for securities violations, and US lawmakers are increasingly cracking down on the cryptocurrency industry.

However, Coinbase is the most reputable major exchange. It is still seen as a potential custodian for institutional investors, and if it succeeds in its legal case, it could establish itself as the largest fiat on-boarder.