What early Coinbase Base activity tells us

TL;DR Breakdown

  • Coinbase Base’s layer-2 network launch sees exceptional DeFi activity.
  • Early activity surpasses other layer-2 networks like Mantle and Linea.
  • Unintended soft launch results in massive trader engagement.

Description

Coinbase Base, the latest layer-2 network in the crypto space, has erupted onto the scene, generating an unparalleled volume in DeFi activity and cross-chain bridge transactions. Its impressive onset gives rise to vital questions about the integrity of these numbers and the participants driving this explosive activity. Coinbase Base vs. its contemporaries Coinbase Base’s inauguration … Read more

Coinbase Base, the latest layer-2 network in the crypto space, has erupted onto the scene, generating an unparalleled volume in DeFi activity and cross-chain bridge transactions.

Its impressive onset gives rise to vital questions about the integrity of these numbers and the participants driving this explosive activity.

Coinbase Base vs. its contemporaries

Coinbase Base’s inauguration was not without its hitches. Interestingly, before the platform’s formal launch, traders discovered a loophole, allowing them to move substantial volume into the network. This unintentional soft launch quickly set Coinbase Base apart from its competitors.

Recent data indicates the value moved to Base was over $150 million at launch, dwarfing other layer-2 networks, Mantle and Linea, which registered $67 million and $47 million respectively.

Sandra Leow, an analyst with Nansen, openly hailed Coinbase Base’s supremacy over its contemporaries. July 29 saw the network’s spectacular soft launch captivate altcoin traders.

New Decentralized Exchanges (DEXes) within the chain witnessed a staggering $200 million in volume within just 24 hours.

Meanwhile, a memecoin—inspired by Coinbase’s founder Brian Armstrong, cryptically named BALD—achieved a $100 million market cap, only to tumble when its creator withdrew liquidity.

The mystery of active addresses

Ethereum, the dominant base chain, boasted just under 430,000 active addresses. Coinbase Base, though still in its infancy, claimed a hefty 100,000 active addresses.

Such figures raise eyebrows. Could Coinbase Base, a newborn in the crypto world, genuinely capture a significant portion of Ethereum’s market?

The answer may not be straightforward. A discerning analysis suggests not all these addresses may be legit. Sybil attackers and airdrop farmers, known for creating multiple blockchain addresses, often populate newer networks.

By employing a myriad of addresses, these users simulate the presence of multiple, distinct users. Their endgame? To bamboozle the system and pocket extra tokens that are often given as rewards to early adopters.

For instance, imagine a sleight of hand where individuals combine resources, paying for the operational costs to churn out thousands of addresses, all with the singular goal of reaping maximum airdrop rewards.

Coinbase Base may be vulnerable to these manipulations, despite their public refusal to partake in an airdrop and their decision to use ether (ETH) for gas fees. Some airdrop experts hint that these denials won’t deter many.

Determining the extent of Sybil activity on Coinbase Base remains an enigma. Sophisticated strategies employed by these actors make it an uphill task to pinpoint the exact amount of Base activity they drive.

In conclusion, while Coinbase Base’s dynamic entry has unquestionably stirred the crypto cauldron, the true nature of its activities still hides behind a veil of uncertainty. One thing is clear, though; the crypto world should brace itself for more revelations as the Coinbase Base narrative unfolds.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Disclaimers:

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2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

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