Coinbase Boosts Ethereum’s Crypto Market Dominance

Coinbase created a new thing called Base that is getting Ethereum users excited. The base is secure and robust because of Optimism. Coinbase’s interest in Ethereum is significant, and people believe other companies will copy it, which could make it popular and essential for cryptocurrency users.

Coinbase is a company that many people use to buy and sell cryptocurrency. They have about 110 million people using the service, and they work with over 245,000 companies in more than 100 countries. Trading cryptocurrency is trendy, but Binance is even more popular than that.

According to Adams, Coinbase getting 20% of its 110M users on Layer 2 would be 10x crypto users. Coinbase’s open-sourcing of Base will attract more users to Ethereum, leading to further growth in the Ethereum ecosystem.

Sebastien Guillemot is a startup company that helps people use blockchain. He said that it was thoughtful of Coinbase to choose a layer two network instead of making it a separate one. Coinbase’s use of layer two networks on Ethereum aligns with the current trend of most cryptocurrency users on the platform.

Coinbase Base and its Potential Impact on Ethereum

On Feb 23, Ryan Watkins, founder of a cryptocurrency investment firm that Coinbase’s actions are essential for Ethereum. He thinks it’s a big deal and will make more people want to use Ethereum. He also feels that Coinbase is the best company to help more people and businesses start using Ethereum.

Gabriel Shapiro warns of government scrutiny for a layer two network controlled by a single company like Coinbase. If the network engages in numerous DeFi transactions or trades many tokens, it could result in difficulties for Coinbase.

“imo, this will accelerate the SEC’s “secondary market” agenda re: blockchain securities issues because they can’t let an SEC registrant “get away with” potential violations & build up a legal arbitrage strategy right under the SEC’s nose.”

Gabriel Shapiro is worried because the government (SEC) has been trying to stop some companies that make stablecoins. Shapiro believes that if the government finds fault with Coinbase’s Base, it could negatively impact the wider cryptocurrency community.

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This article conveys general information, and the opinions expressed should not be considered personal advice for any individual or specific security or investment product.

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