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That should clear up the confusion.
You can just track the damage it does across a run and casually observe that it generally averages like one damage a fight tops. Probably the worst relic in the game other than bottled flame (when you don't have an attack that benefits from being played on turn 1) or maybe the Toolbox, since those are often actively worse than not having them.
Install a relic tracker and try it out. I admit I didn't think of Tiny Chest for the "definitely worse" list, but it pretty much doesn't do anything at all. Unless you absolutely spam it against nemesis, you're pretty unlikely to see it do more than 30 damage or so across an entire run. The best case scenario for it that's practical is to get both Boot and Sword Boomerang/Pummel/some shiv card/Go for the Eyes early in which case it'll be a discount Vajra for act 1 and maybe average closer to 1 damage a turn than per fight (compared to say, Hourglass doing 3-12 damage every turn).