Cryptocurrency
‘Massive’ crypto use cases to surface by 2030 — Coinbase exec
Coinbase launched Base, its new blockchain, in late July, and it has already become a major player among Ethereum-based layer-2 chains.
On Sept. 21, for instance, the chain notched some 677,000 transactions, with 870,163 “new addresses seen,” according to Etherscan.
By comparison, Arbitrum, a prominent layer 2 that launched in June 2021, had 925,000 transactions and 54,233 new addresses on the same day.
Base is now hosting hundreds of decentralized projects, Jesse Pollak, head of protocols at Coinbase, told Cointelegraph at Messari’s Mainnet conference in New York City on Wednesday, Sept. 20, including decentralized inflation oracles, restaurant rewards projects, an insurance aggregator and everything in between.
A major force behind the Base project, Pollak sat down with Cointelegraph at Mainnet for a Q&A encompassing Coinbase’s vision for its new platform, the rising promise of decentralized applications (DApps) and the evolution of blockchain technology.
Cointelegraph: You’ve said Base was created with a “clear vision: bring the next million builders and billion users on-chain.” Those are big numbers. How long will they take to achieve?
Jesse Pollak: It’s less about Base specifically and more about a billion users coming on-chain — embracing the power of this new platform [i.e., blockchain] that’s transparent, open, global — and developing apps that can improve people’s lives. Base is obviously going to play a big role in that, but it’s much bigger than just us. We really see our role as helping grow that pie.
CT: And the timeline?
JP: I see it happening this decade, i.e., one million developer jobs by 2030. There’s already been massive change in the 2020s — not just in the industry but the entire world. It’s going to happen faster than people might expect.
CT: What still needs to be done before we see mainstream adoption?
JP: Three high-level things need to happen. First, we need to make it cheaper for people to use these apps that are being built. We’ve done the first few orders of magnitude of cost reduction with Base. The same app might have cost $5 or $10 to use now costs 5 to 10 cents.
But we don’t think that’s enough. We really want to lower it so far that the cost is almost imperceptible to users.
Second, we want to make it easier for people to use these apps. A lot of that is building better wallet experiences.
Third, we need to have better identity infrastructure on-chain. Today, most consumer borrowing in the United States and other developed countries is under-collateralized borrowing in the form of credit cards or buy-now-pay-later arrangements. And almost none of this is possible on-chain now because we don’t have reliable identity systems.
So, to enable that next wave of big use cases, we’ll need lower costs, better wallets and better identity.
CT: You’ve said that what most people have done with crypto until now is speculate on the crypto markets, and it’s time to move on. Has it been a mistake to focus so much on the market price of Bitcoin, say?
Pollak: I don’t think it’s wrong if you look at the way that technology life cycles evolve. Carlota Perez, for instance, writes that financial bubbles are almost inevitable when you have meaningful technological innovation like the internet or electricity. You have this S-curve of adoption. [See chart below.] In the beginning, a lot of innovation is fueled by speculation as people see potential in the technology. This speculation draws in capital, which basically funds the innovation and eventually leads to impacts that change the world.
CT: Where are we now?
JP: We’ve reached the point where it’s time to move out of that [speculative] phase and into the phase of really bringing utility to everyday people. The infrastructure is ready.
Even two years ago, if you wanted to use an app on Ethereum, it was going to cost you $5 or $10 or $100. That’s just not something that is supportive of building everyday use cases.
CT: Speaking of Ethereum, why did Coinbase decide to build its layer 2 on the Ethereum blockchain? Did you ever consider using another mainnet?
JP: We actually looked three times at building a chain: In 2018 and 2020, and then most recently in 2023. And the first two times, we looked at building an alternative layer 1, one which would have been competitive with Ethereum. Our takeaway was we didn’t want to put ourselves on an island disconnected from the rest of the ecosystem.
The third time, we looked at all of the options: Ethereum, alternative layer 1s, layer 2s, etc. What felt natural to us about Ethereum was it is the largest crypto ecosystem by value, by activity, by developers — by order of magnitude or two — and so by building Base as an Ethereum layer 2, we could both contribute to scaling Ethereum and be a part of this ecosystem that’s larger than us.
CT: What about Ethereum’s oft-discussed scalability shortcomings, including network congestion and sometimes ballooning fees? Have those been largely solved through extensive use of layer-2 rollups like Optimism and Arbitrum (and now Base), where transactions are “batched” and added to the mainnet in a single lot?
JP: If you look at the history of Ethereum, the original vision was: We’re going to do all this at layer 1, and we’re going to scale up through sharding. But around 2020 and 2021, as layer 2s emerged, the Ethereum community and core development groups basically said: What if we changed our strategy where instead of trying to introduce all of this complexity at layer 1, we build the infrastructure to enable innovation at layer 2?
That was something that Vitalik [Buterin, Ethereum co-founder] wrote about a lot. And over the last two years, that’s what happened. Coinbase supported an initiative over the last year-and-a-half called EIP-4844, for instance, that introduced data availability for rollups, leading to reduced fees and more transaction throughput.
But do I think we’ve solved the problem? No. These things take years to solve, and I think we are now two to three years into making those investments, and we have another two to three years or more potentially to go. But I think we’ve made a lot of progress.
You can see this at L2Beat. [See chart below]. Two years ago [Sept. 21, 2021], there were eight transactions per second [on average] on layer-2 projects and 13 TPS on the Ethereum mainnet. Today, there’s 58 TPS on layer 2s and 11 TPS on the Ethereum mainnet. So we’ve gone from less than 1x to 5.7 times faster in two years.
CT: Are you surprised that a “buzzy” social media DAPP — Friend.tech — was initially Base’s biggest performer after its summer launch? Its fees surpassed $1 million in one 24-hour period. Still, maybe this wasn’t the serious use case that some critics were hoping for.
JP: Well, when the first social apps launched on the internet, some people looked at them and said, hey, these things are toys. When are we going to go do the serious stuff like bringing newspapers online? If you look at where we are today, social apps are used by billions of people every day. They will continue to be a way that people connect, and social apps will play a critical role on-chain.
What’s powerful about this next generation of on-chain social apps is that they will enable people to have sovereign ownership. They will continue to own their creativity, and they’ll continue to be in control — rather than the large corporations that are controlling them now.
CT: Can you tell us about a DApp launched on Base that excites you?
JP: Check out Blackbird, a customer engagement platform for restaurants. You walk into any participating restaurant, you tap your phone, and it instantly knows who you are. They customize the experience for you. Repeat visitors can earn rewards. It’s in 10 or 15 restaurants now in New York City but is soon expanding into California. A lot of people are talking about it on Twitter.
CT: Where will blockchain finally find its “killer app” — to do for the cryptoverse what email did for the internet? Or has it already emerged in your view?
JP: There won’t be one killer app. There will be many killer apps. We’re starting to see some of those emerge. The one with the most real-world adoption is stablecoins. If you look at the total volume of stablecoin transactions over the last year, it’s a massive number. It will be a big driver of economic freedom in the decade ahead. It gives people in places like Argentina or Turkey access to a stable currency like the U.S. dollar.
But stablecoins won’t be alone. We will see many on-chain applications that will change people’s lives for the better.
Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.
TL;DR
- Shiba Inu partnered with Chainlink to enable cross-chain functionality and enhance Shibarium’s ecosystem.
- Despite that, SHIB and LINK prices dropped significantly amid a broader crypto market pullback.
The Collaboration
The popular meme coin project Shiba Inu announced a partnership with the blockchain oracle network Chainlink. As a result, the assets SHIB, BONE, and LEASH adopted the Cross-Chain Token (CCT) standard to become available across 12 blockchains.
This mechanism, employing Chainlink’s Cross-Chain Interoperability Protocol (CCIP), allows token transfers from Ethereum to other chains, while the burn-and-mint program facilitates cross-chain transfers across all other networks.
Additionally, Shibarium (Shiba Inu’s layer-2 scaling solution) integrated the Chainlink standard for blockchain interoperability as its “canonical cross-chain infrastructure.”
“Chainlink CCIP enables Shibarium developers to build feature-rich, reliable cross-chain applications that grow the Shibarium network,” the disclosure reads.
Last but not least, Shiba Inu adopted the Chainlink standard for “low latency market data.” The team behind the meme coin maintained that Chainlink Data Streaks supplies “premium high-frequency data” and delivers “unmatched functionality.”
One of Shiba Inu’s leading developers, who uses the X moniker Kaal, claimed the SHIB ecosystem “transcends every boundary” after the collaboration.
Chainlink’s Chief Business Officer – Johann Eid – also chipped in. He assumed that the integration of the CCIP standard will enhance Shibarium’s capabilities and “drive wide adoption of its ecosystem.”
“We look forward to seeing how the Chainlink standard for cross-chain interoperability and Chainlink Data Streams unlocks innovation, expands the Shibarium Network, and supports the development of efficient and secure DeFi markets,” he concluded.
SHIB and LINK Price Reactions
Despite the announced collaboration, both assets remain deep in the red on a daily scale. Shiba Inu (SHIB) is down almost 20%, currently trading at around $0.00001964, while Chainlink (LINK) has dipped by 16% to less than $21.
Their poor performance coincides with the severe correction in the entire cryptocurrency market, which started shortly after the latest FOMC meeting. As CryptoPotato reported, the Federal Reserve reduced the benchmark by 0.25%, but Chairman Jerome Powell hinted that the policy might be halted next year due to rising inflation concerns. He also said the central bank is not permitted to purchase Bitcoin (BTC) despite Donald Trump’s promises.
In the aftermath, the primary cryptocurrency briefly collapsed to almost $92,000. Leading altcoins, including Ethereum (ETH), Ripple (XRP), Solana (SOL), Dogecoin (DOGE), and many more, suffered, too, charting double-digit price losses.
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!
Cryptocurrency
These Metrics Suggest Bitcoin Still Has Room for Growth, According to Glassnode Founder
Bitcoin (BTC) is currently worth around $94,000 after trading above $108,000 earlier this week. While traders continue to take profits, analysts believe the cryptocurrency still has room for growth.
According to an X thread by Rafael Schultze-Kraft, the co-founder of the on-chain market intelligence platform Glassnode, over 20 charts and metrics suggest BTC has yet to form its top for this cycle.
More Room for Growth
The Market Value to Realized Value (MVRV) metric, which measures unrealized profitability, is currently hovering around 3. Historically, this indicator has signaled overheating above 7; hence, there is still room for BTC to grow. Also, the top MVRV Pricing Band, which is obtained from calculating the number of days the MVRV has traded at extreme levels, is currently at the 3.2 level.
Schultze-Kraft mentioned that analyzing long-term holder (LTH) profitability metrics like the Relative Unrealized Profit and LTH Net Unrealized Profit/Loss can offer insights into the risks of profit-taking. These metrics just entered the euphoria zone, hitting the 0.75 level. In 2021, BTC rallied approximately 3x after the indicators entered this zone and topped when they hit 0.9+.
Another metric to look at is the Yearly Realized Profit/Loss Ratio, which monitors coin spending among investors. The Glassnode founder disclosed that this indicator peaked above 700% in previous cycles, however, it is currently around 580%.
One more indicator to watch is the Market Cap to Thermocap Ratio, which is not close to previous extremes. Historical data has shown that BTC tops occur when this metric reaches a multiple of 32-64; however, the metric currently hovers at the bottom of this range. The top band of this metric will put Bitcoin’s market cap above $4 trillion.
BTC Top at $230K?
Furthermore, the Investor Tool metric suggests BTC could top at $230,000. The Bitcoin Price Temperature indicator counters this suggestion but places a BTC top at $151,000.
Moreover, the Value Days Destroyed Multiple, which compares near-term coin days destruction to the yearly average to determine increasing spending of older coins that eventually overpower demand, sits at 2.2. With previous extreme values above 2.9, the indicator suggests room for growth.
Schultze-Kraft listed other metrics and charts, including the Mayer Multiple, the Cycle Extremes Oscillator Chart, the Pi Cycle Top Indicator, the LTH Inflation rate, the Sell-side Risk Ratio, and the Short-term Holder Spent Output Profit Ratio.
While these indicators have placed bitcoin’s cycle top at different levels, they all suggest that the digital asset is only halfway through this bull run.
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!
It’s not always roses and rainbows in the cryptocurrency market and even though it may have felt like it for the past few weeks, the last seven days made sure to remind us of it. The total capitalization dropped by more than $300 billion as Bitcoin’s price went on a complete rollercoaster, similar to that of the majority of altcoins.
The first few days of the week started as we are more or less used to by know – up only. Bitcoin’s price tapped a new all-time high above $108,000 and the market was anticipating the results of the meeting of the US Federal Result. Quite frankly, everyone was expecting for the institution to once again cut the interest rates, which is generally perceived as a positive move as far as risk-on assets go. Oh, if it were true this time around.
During the meeting, the Chairman Jerome Powell said that they might consider a slowdown of rate cuts, given that the inflation in the country is rising. This propelled a market-wide sell-off across the crypto industry but also across tradfi as the majority of indices also dropped considerably.
More interestingly, Powell addressed the possibility of Bitcoin becoming a reserve asset for the country, saying that the Federal Reserve is legally prohibited from holding it. This might put a dent into Trump’s plans and it appears that investors didn’t like it as the cryptocurrency is now trading below $100K, having plummetted to around $92,000 earlier today.
The sell-off also triggered over $1.3 billion worth of liquidated positions across the cryptocurrency market on Friday alone.
The majority of altcoins are trading in the red, with Ethereum down almost 15%, XRP – 10%, BNB – 8%, Solana -15%, DOGE – 25%, and so forth.
As it’s almost always the case, a lot of people in the community are already speculating whether or not the bull run is over, but during times like these it’s really important to zoom out and keep a steady eye on the bigger picture.
In any case, if one thing is sure, it’s that the next few weeks are likely to be quite interesting, so let’s see how it goes!
Market Data
Market Cap: $3.45T | 24H Vol: $482B | BTC Dominance: 55.3%
BTC: $96,552 (-4.5%) | ETH: $3,370 ( -15% ) | XRP: $2.21 (-10%)
This Week’s Headlines You Can’t Miss
MicroStrategy Announces First Bitcoin Purchase With BTC Prices Above $100K. It wouldn’t be a Monday these days if the Michael Saylor-founded business intelligence giant didn’t announce a massive BTC purchase. In this week’s example, the company allocated $1.5 billion to accumulate 15,350 BTC at an average price of just over $100,000.
XRP Price on the Move as Ripple Announces Stablecoin Launch on Dec 17. Although it continues with its legal tussle against the US securities watchdog, Ripple entered the stablecoin industry this week by finally launching its own product called RLUSD. The token release was on December 17, and it positively impacted XRP’s price at the time.
This Cohort of Ethereum Whales Accumulates Record 57.35% of Supply. Ethereum whales have been on an accumulation spree lately, according to on-chain data. The number of large wallets holding at least 100,000 ETH has jumped to an all-time high of over 57% of the entire supply.
BlackRock’s IBIT Nearly Doubles Gold ETF’s 20-Year AUM Milestone in Less Than 12 Months. The world’s largest Bitcoin ETF continues to shatter records. Its AUM has skyrocketed in the past 11 months to almost $60 billion as of December 19, which dwarfed the performance of the company’s biggest gold-based ETF.
Bitcoin Price Tumbles Toward $100K Despite Fed’s Latest Rate Cut. The entire financial field expected another rate cut at the end of 2024, and that’s what they got. However, the hawkish words by Jerome Powell about potentially stopping the rate reductions in 2025 sent the ever-volatile and risky crypto market down hard. At first, BTC tumbled toward $100,000 but quickly lost that level and dumped all the way south to $92,100, leading to speculations about whether this bull market has ended.
Fed Effect: Biggest Net Outflow Day for Bitcoin ETFs Led to Crash Below $96K. Powell’s aforementioned comments seemingly scared US investors out of their BTC positions, which is particularly true for the spot Bitcoin ETFs. The financial vehicles recorded their worst day in terms of daily net outflows on the day after the FOMC meeting (December 19), with nearly $700 million being withdrawn.
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.
Forex2 years agoForex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Forex2 years ago
How is the Australian dollar doing today?
- Forex2 years ago
Unbiased review of Pocket Option broker
- Forex2 years ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985
- Cryptocurrency2 years ago
What happened in the crypto market – current events today
- World2 years ago
Why are modern video games an art form?
- Commodities2 years ago
Copper continues to fall in price on expectations of lower demand in China
- Forex2 years ago
The dollar is down again against major world currencies
