Coinbase Global (COIN) shares have dropped 46% in the past three months, hitting a low of $179 from an all-time high of $444. The decline is attributed to falling crypto prices and a risk-off environment for high-beta assets. Despite oversold conditions, the company’s fundamentals remain strong.

Founded in 2012, Coinbase has a market cap of $52.5 billion and operates one of the largest cryptocurrency exchanges. While COIN stock is above its 52-week low of $142.58, it is far from its high of $444.64. Its valuation at 29 times trailing earnings is lower than in previous crypto cycles, considering profitability and balance sheet strength.

In the third quarter, Coinbase reported $1.9 billion in revenue, up 25% sequentially, with $433 million in net income and $801 million in adjusted EBITDA. Transaction revenue rose 37% to $1 billion, and subscription and services revenue increased 14% to $747 million, driven by stablecoin income from USDC balances.

Stablecoin revenue alone was $355 million in Q3, with average USDC balances of $15 billion. Management expects Q4 subscription and services revenue between $710 million and $790 million, cautioning against quick extrapolation of transaction revenue due to crypto volatility. Analysts are bullish on Coinbase, with a consensus rating of “Moderate Buy” and a mean target price of $345.49, suggesting 92% upside potential.

Read more at Yahoo Finance: Down 45% in Just the Past 3 Months, Should You Buy the Dip in Coinbase Stock?