I'm not surprised it was the biggest, as it's a company that's already known to crypto users, so there's a minimum risk of getting scammed, and they have 56 million users, so a huge community of people behind them. These two things sound promising enough to invest it because reputation + a huge user base almost guarantee the price will skyrocket. But that's a public offering, so it's about selling shares to people. That's what might have gathered attention not only of the crypto community, but of big stock traders as well, since getting into something crypto-related and yet familiar is getting more attractive to them.
I have to say they dropped pretty quickly afterwards, right now it is like 50 billion or so in marketcap. So, it is not just about having a lot of users or being great, they have an amazing model to make money as well with the trading fee's and that is what most of the wall street people did as well, they just make money based on commission whenever they convince someone to buy a stock but Coinbase is a bit different in which they do not even convince people, people go register an account to do that job themselves.
So, the reason why it was highly valuated and now not so much is the fact that it is a great way to make profit, buy the stock and hold it long enough and they will keep on profiting, the operating costs are not high and the profits are steady and that is what you want from any company or stock you own. It might be down now because it was overvalued, but the idea stands that it is a good stock to own.
Given how "small" Coinbase is compared to Binance in terms of trading volume and customer base (and probably also profitability), I was expecting the stock to drop by a lot. If you compare businesses across a sector, why should Coinbase have a higher valuation than Binance? That didn't make sense to me. Or do you know of any specific reasons why that could be justified?