Coinbase, Circle, Metaplanet Stocks Tumble: What's Driving The Decline?

A wave of sharp drawdowns across crypto-exposed equities like Coinbase COIN, Circle CRCL, and Metaplanet MTPLF is pointing to a broad market rejection of inflated valuations.

What Happened: The declines, driven less by macro headwinds and more by overpayment for narrative-driven exposure, are triggering a necessary reset in how investors price crypto's equity proxies, according to 10x Research.

Crypto equities are undergoing a painful repricing.

Shares of major crypto-linked companies, including Coinbase, Circle, Japan's Metaplanet, and South Korea's Kakaopay, have posted losses of up to 50% from recent highs, a collapse fueled not by systemic failures, but by investor realization that the premium they paid for exposure to digital assets was detached from financial fundamentals.

Metaplanet, once touted as Japan's “Strategy MSTR proxy,” has seen its stock plunge over 50% from its June peak.

The company had benefited from local programs like the NISA tax shelter and speculative retail flows anticipating crypto ETF approvals and a friendlier tax regime in Japan.

However, with no concrete policy changes materializing, speculative demand has evaporated.

Circle, the issuer of USDC, is still trading at a 153x forward price-to-earnings (P/E) ratio, a valuation that has come under increased scrutiny.

Coinbase and Robinhood HOOD, by comparison, sit at 102x and 69x, respectively.

In an environment where trading volumes have plummeted, from $299 billion in mid-July to between $108–138 billion, the earnings potential of these platforms is contracting, leaving their rich valuations harder to justify.

Coinbase stock is now approximately 5% below its modeled fair value relative to Bitcoin BTC/USD, according to the 10x analysis.

Also Read: SharpLink Ups Ethereum Bets, Closes In On 500,000 ETH Holdings

Why It Matters: Analysts believe further downside may be warranted.

A drop below $300 could bring it into more attractive territory, especially as lower volatility erodes the bullish sentiment that previously sustained inflated multiples.

Realized volatility in Bitcoin has fallen to just 28%, a level that reflects not just short-term consolidation but also a deeper loss of speculative momentum.

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Crypto-exposed equities rely heavily on high realized volatility to sustain upside potential and investor interest.

As this key input dries up, the structural bull case for these equities weakens.

Bitmine BMNR and Sharplink SBET, two smaller Ethereum ETH/USD-adjacent names, are also unraveling under the same pressure: a fading narrative premium and weakening volume data.

With sentiment souring and few near-term catalysts, newer investors, particularly those who bought the recent top, are capitulating.

The repricing appears to be driven by three key factors:

Excessive valuations relative to earnings
Rapidly declining crypto trading volumes
Narratives outpacing actual adoption or monetization

Crucially, the report highlights that this isn't just a short-term correction.

It reflects a broader shift in how investors view equity-based crypto exposure.

The traditional assumption that holding equity in a crypto-aligned company offers leveraged upside to token growth is being challenged by a more disciplined approach to entry points, earnings quality, and user retention.

For now, analysts advise caution.

While a further 10–20% decline in some of these names could make them compelling, they argue that high-conviction accumulation should wait until momentum flips positive and valuations compress further.

Retail investors may need to endure more pain before opportunity emerges.

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