Can Coinbase Change the Game in a Declining Bitcoin & Crypto World?

• Crypto analyst Robert Leshner predicts Coinbase’s Layer 2 (L2) solution, Base, could revolutionize the market.
• Base’s credibility could attract new users to the L2 ecosystem.
• Base is gaining attention due to its rapid value increase and growing user base.

Robert Leshner, a renowned crypto analyst, has made a bold prediction about the potential impact of Coinbase’s Layer 2 solution, Base, on the market. He believes that Base’s credibility could draw new users to the L2 ecosystem, and its rapid value increase and growing user base are already making waves in the crypto world.

Will Coinbase Change the Game?

Crypto analyst Robert Leshner believes that Coinbase’s entry into the Layer 2 (L2) space could be a game-changer. While there are various L2 solutions in the crypto space, Leshner acknowledges that the Coinbase brand carries a unique level of trust and credibility. He suggests that this trust could attract more users to the L2 ecosystem, accelerating its adoption and usage.

Leshner’s statement was as follows:

“I think it takes a long time for any L2 to gain traction with a few hundred million dollars, and I think people are transitioning to Base in anticipation that Coinbase will succeed and attract developers and many new applications and use cases.”

Haseeb Qureshi, managing partner at Dragonfly, points out that the rapid accumulation of value in Base, with about $230 million in Total Locked Value (TVL), is an indicator of strong early interest.

This promising start positions Base as the fifth largest L2 solution by TVL, a notable achievement considering the typical gradual growth of new blockchain solutions.

Increasing Number of Addresses

Qureshi also notes that the number of daily active addresses on Base is increasing, reaching approximately 100,000. These metrics underscore the growth Base has managed to achieve in a relatively short time, indicating a growing user community.

The number of transactions per second (TPS) on Base has also impressed observers, with an average TPS of about seven. This places Base in a favorable position among competing L2 solutions and showcases its technical capabilities.

However, Base’s launch has not been without controversy. Some in the industry have expressed concerns about the absence of fraud proofs in Base’s design. This has sparked debates within the crypto community and highlighted the importance of robust security features in the rapidly evolving L2 landscape.

Conclusion

In conclusion, Coinbase’s L2 solution, Base, has the potential to significantly impact the crypto market. Its rapid value increase, growing user base, and the credibility of the Coinbase brand could attract more users to the L2 ecosystem. However, concerns about security features underscore the importance of robust safeguards in this rapidly evolving sector.