Connect with us
  • tg

Cryptocurrency

Coinbase’s Layer 2 Base Stands Out as Top Choice for New Capital

letizo News

Published

on

Layer 2 networks have witnessed massive activity this year, even as their native tokens slumped amidst intense volatility across the broader market. These solutions have witnessed relatively steady activity since the beginning of the year.

However, the latest analysis by IntoTheBlock revealed that Base continues to be the primary attraction for new capital.

Investors Flock to Base

Over the course of this week, net ETH deposits into the Base have exceeded 6,500 ETH, marking a significant increase, according to the data shared by ITB. On the other hand, its rival Arbitrum saw just half of this figure. Optimism lagged even further behind with only a fifth of the deposits Base received.

Such a trend suggests that despite the growing interest in Layer 2 scaling solutions, investors still see Base as the preferred choice for deploying their capital, possibly due to factors like its established infrastructure or perceived reliability.

“Despite leveling activity among Layer 2s, Base continues to attract the most new capital. Since Monday, net ETH deposits to Base have surpassed 6,500 $ETH, more than double that of Arbitrum and five times as much as Optimism.”

Base – the Ethereum layer-2 solution designed by Coinbase to expand its user base on-chain – was launched in August 2023. The end goal is to ensure faster transactions at a lower cost.

Coinbase’s recently released Q1 report indicated that trading volume on the Layer 2 network exceeded that of its competitors, especially following Ethereum’s Dencun upgrade. In fact, DeFi crypto exchanges on Base witnessed daily trading volumes surpassing $1 billion, significantly closing the gap between Base and Coinbase’s main centralized exchange, which trades nearly 250 cryptocurrencies.

Following the Dencun upgrade, Base saw a rapid increase in its daily transaction volume and revenue. It even outpaced already established players like Optimism and Arbitrum. This upgrade essentially slashed costs for Layer-2 scaling chains such as Base, resulting in a significant rise in user engagement and transaction volume.

Base Witnesses Surge in Scammer Activity

Owing to its growing popularity, the Base chain appears to be a target for scammers.

Scam Sniffer’s data observed that two of the top 10 largest single thefts occurred on this chain, making up 21% of the month’s total theft. Since January, scammer activity on the network has increased by almost 1,900%, resulting in approximately $170,000 stolen through phishing scams. In April, nearly 90% of the stolen assets were ERC-20 tokens.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

Cryptocurrency

BTC Price Rises Above $105K After Fed Decision, LINK Up 7% Daily (Market Watch)

letizo News

Published

on

Bitcoin’s price experienced some expected volatility after yesterday’s FOMC meeting but has headed north and now sits above $105,000.

Most altcoins are in a similar position, with ETH increasing past $3,200 and SOL rising to $240.

BTC Above $105K

The primary cryptocurrency had a quiet weekend in which its price stood mostly in a tight range between $104,000 and $105,000. The landscape changed on Monday, similar to the previous one when the bears took charge of the market and initiated a substantial leg down.

Within hours during the morning Asian trading session, BTC plunged by several grand to a multi-week low of under $98,000. Nevertheless, the cryptocurrency didn’t stay there for long and went back into six-digit territory by the end of the day.

The next couple of days were a lot less eventful, aside from another brief decline toward $100,000. The market anticipated the Fed’s decision on Wednesday evening, and bitcoin stood still. Once the expected decision of no interest rate cuts was announced, BTC headed south by over a grand from $103,000 to $101,500.

However, it bounced off and has added roughly $4,000 since then to trade at $105,500 as of press time. Its market capitalization has neared $2.1 trillion on CG, while its dominance over the alts is well above 56%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

LINK Jumps 7%

Most alternative coins have followed BTC on the way up. Ethereum defended the $3,000 level and now sits above $3,200 following a 3% daily increase. Similar price jumps are evident from SOL, ADA, and TRX.

Chainlink has gained 6.5% on the day and now trades close to $25. Even more impressive gains come from the likes of SIU, LTC, HYPE, and ONDO.

The cumulative market cap of all crypto assets had added more than $100 billion in a day. As a result, the metric sits above $3.710 trillion on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto
Cryptocurrency Market Overview. Source: QuantifyCrypto
SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

Continue Reading

Cryptocurrency

How High Could Bitcoin Go in This Bull Cycle? Analyst Weighs In

letizo News

Published

on

TL;DR

  • Analyst Ali Martinez suggests Bitcoin (BTC) has more room for growth during this bull run before a potential cycle shift.
  • Essential factors like reduced MVRV and negative exchange netflows support the thesis of further gains in the near future.

The Possible Cycle Top

The primary cryptocurrency has been on an evident uptrend in the past several months, charting substantial gains after Donald Trump’s win in the US presidential elections.

Recall that Bitcoin (BTC) was trading at less than $70K prior to the voting, whereas a month later, it surpassed the psychological level of $100K for the first time in its existence. Despite the volatility, the solid performance continued, and on January 20 (hours before Trump’s inauguration), the asset tapped a new all-time high of almost $110,000. The next 10 days offered more turbulence before BTC stabilized at its current $105,000 (per CoinGecko’s data).

BTC Price
BTC Price, Source: CoinGecko

According to numerous industry participants, the valuation has yet to reach unseen peaks during this bull cycle. The popular X user Ali Martinez recently suggested that BTC could soar to as high as $184,000 before entering a bearish mode. He based his prediction on the assumption that cycle shifts typically occur once the price surpasses 2.4x the 200-day Simple Moving Average (which is set at the depicted mark). 

Many factors signal that BTC might indeed flourish in the following months. One of those includes the asset’s historical performance in February. As CryptoPotato reported, 8 of the last 12 Februaries saw BTC jumping by double digits. It is important to note that next month is a post-halving February, and all previous ones have resulted in impressive spikes. 

Bitcoin’s Market Value to Realized Value (MVRV) and exchange netflow are also worth mentioning. The former metric has been hovering below the healthy level of 2.5 over the last several days, suggesting that the asset might have shifted toward undervalued territory.

BTC’s exchange netflow has been predominantly negative in the past week, with outflows surpassing inflows. This could be interpreted as a transition from centralized platforms toward self-custody methods, which reduces the immediate selling pressure. 

Additional Bullish Predictions

Martinez is not the only one envisioning further pumps for BTC in the near future. X user Captain Faibik observed the formation of a “broadening wedge pattern” to set a $120,000 target potentially reached in February. 

Michael van de Poppe and Jelle were also bullish. The former thinks a new ATH may occur in the coming weeks, while the latter believes $110K is “the final hurdle” before “a new leg of price discovery awaits.”

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Continue Reading

Cryptocurrency

Fed Chair Calls for Crypto Regulation, Warns Banks Against ‘Excess Risk Aversion’

letizo News

Published

on

“I do think it would be helpful if there were a greater regulatory apparatus around crypto,” the US central bank chair said at the Federal Open Market Committee press conference on Jan. 29. He added that it is something Congress and the Fed have been “working on quite a lot.”

“We’ve actually spent a lot of time, you know, with House Financial Services, working together with them on various things, and I think that would be a very constructive thing for Congress to do,” he said.

The comments came as the Federal Reserve maintained interest rates at 4.25% to 4.5% following last week’s CPI data that showed inflation was not as high as many anticipated.

Don’t Debank Crypto Customers

Powell also said the central bank was “not against innovation” with regard to cryptocurrencies.

Speaking about banking restrictions, he added, “We certainly don’t want to take actions that would cause banks to, you know, terminate customers who are perfectly legal just because of excess risk aversion, maybe related to regulation and supervision.”

Powell’s remarks at the first FOMC meeting under the Trump administration came as concerns about so-called “debanking” efforts have risen to the highest ranks of government.

“Banks are perfectly able to serve crypto customers, as long as they understand and can manage the risks, and it’s safe and sound,” Powell said before adding, “The threshold has been a little higher for banks engaging in crypto activities, and that’s because they’re so new.”

He noted that individual investors needed better protection as the risks may not be fully understood. He also compared crypto to stocks and mutual funds, saying that similar consumer safeguards should apply.

No Disagreements With Trump

The central bank chair has avoided responding directly to comments made or actions taken by Donald Trump in recent weeks. He said there has been “no contact” with the new president, noting that disagreements would undermine the Fed’s credibility.

“We stand ready to take appropriate action to support the smooth transmission of monetary policy, including adjusting the details of our approach for reducing the size of our balance sheet in light of economic and financial developments,” he said.

More economic data is expected this week, with fourth-quarter GDP Growth Annualized advance estimates due on Thursday and December’s Core Personal Consumption Expenditures (PCE) report due on Friday.

Crypto markets were up marginally during the Thursday morning Asian trading session, with Bitcoin leading the pack and reclaiming $105,000.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Continue Reading

Trending

©2021-2024 Letizo All Rights Reserved