Base co-founder Jesse Pollak announced via social media that Coinbase increased its Bitcoin and Ethereum holdings in Q3, enhancing its onchain strategy and future token prospects.
The increased holdings suggest a strategic staking in Ethereum's ecosystem, potentially affecting market dynamics and liquidity flows with Coinbase’s new Layer 2 initiatives.
Coinbase Boosts BTC and ETH Stakes in Q3
Coinbase's increased accumulation of Bitcoin and Ethereum is a key step in advancing its crypto asset strategy. Jesse Pollak revealed on social media that the company had added 2,772 BTC and 11,933 ETH. This action underscores their pursuit of blockchain advancements, especially within Ethereum's Layer 2 sector through the Base platform.
Coinbase's strategy notably aligns with their long-term goals of decentralization and integration within Ethereum's ecosystem. Their decision to bolster BTC and ETH holdings might affect on-chain token dynamics and liquidity flows towards a prospective Base token. JP Morgan's research suggests that a Base token could unlock valuations between $12 billion and $34 billion.
Brian Armstrong, CEO of Coinbase, stated, "We are exploring the idea of a Base native token," highlighting compliance and regulatory considerations in mind for potential developments. Industry experts anticipate that Coinbase's asset growth may shift liquidity dynamics across Layer 2 protocols, marking substantial industry response.
BTC Price Trends and Possible Base Token Impact
Coinbase's strategic moves could reshape crypto economics in the near term, similar to previous Layer 2 expansions.
Bitcoin currently trades at $109,620.70 with a market cap of approximately $2.19 trillion and a market dominance of 59.32%, according to CoinMarketCap. The price has decreased by 0.74% in the past 24 hours and 3.48% in the past 90 days. Meanwhile, its circulating supply stands at 19,942,003 against a max supply of 21 million, reflecting ongoing circulation trends and market activities.
Insights from the Coincu research team underscore the significance of Coinbase's recent strategic actions, emphasizing the impact on market liquidity and potential regulatory shifts. They note historical parallels to previous Layer 2 expansions, suggesting both technological and financial repercussions that could reshape crypto economics in the near term.