Weekly Newsletter #5

Will Coinbase's L2 adopt BILLIONS of users?!?

Author

Run The Chain
February 24, 2023

Newsletter #5

GM/GN, guess bull 🐂 market rally is gone 😂Hopefully everyone's been doing well! Grab your Joes ☕️ and milk 🥛, and let’s get to this week's news! 👇

TOPICS OF THE WEEK

Will South Park be right?

  • Market Analysis

  • News of the Week

  • Other Headlines

  • 🤑 Funding 🤑

  • Meme of the Week

Lots of 🩸 these days...

DATA YOU SHOULD CARE ABOUT

PCE comes in higher than expected, and many believe that inflation will continue—a bleak look on the markets this week with all equities and risk assets getting hit hard. The market is starting to price in another rate hike.

Onto other stats, BTC Ordinals have absolutely POPPED off. The amount of media created in the past few weeks has been incredible. Are we going to see BTC NFTs in the next bull run?

Fun 😄 fact: BTC NFTs were introduced 9 years ago but were overshadowed by the rise of Ethereum!

Tough day for 'longs' today. We saw ~$120 million in longs get liquidated, and it seems like 12k is imminent at least. That's all we see on CT 😂

NEWS OF THE WEEK

A New L2 is in Town - Coinbase 🔵

Coinbase did a little tease on Wednesday with this emoji, 🔵, and it got people pumped up! If you remember,Coinbase has previously tried to launch NFTs, but that could have gone better. Anyways, people are excited about this and especially about the future of it being able to onboard BILLIONS+. Yeah, you read that correctly, billions. So what is Base?

Here's all you need to know:

  • Base is an Ethereum L2 that provides secure, low-cost, and ease when building dApps. 

  • Base will NOT have a token, and it will use ETH as a native gas token

  • Base will use Optimism's OP Stack. Coinbase will utilize code from Optimism, and Ethereum will secure Base. It will ensure cheap fees while having all the features of Ethereum. 

  • The on-chain home for Coinbase and a bridge for bringing users on chain

  • 48 of Coinbase's partners had early access to the testnet, which included companies like Chainlink, Magic Eden, Uniswap, Animoca, and more. 

On top of the new blockchain, Coinbase also announced a new fund - Base Ecosystem. It will support early-stage projects that are interested in building on Base! You can check and fill out this doc if you're interested. 

The Importance:

One of the largest crypto exchanges in the US has joined the L2 Wars. This is super exciting as DeFi is a crucial component of crypto. Coinbase has one of the biggest advantages over its competitors, namely Optimism and Arbitrum, which are the users. Coinbase has 110 million users with $80 billion in assets. Coinbase's assets equate to 12.5x of the ENTIRE L2 ecosystem. This will be great for all L2s since it will increase the overall marketshare for everyone!

L2s are happy!

The US has adopted a hardline stance towards crypto, making it hard for crypto startups to thrive. With other countries like Dubai, Hong Kong, and the United Kingdom seeking public opinion on how to regulate the industry - the US takes a much harsher stance. After the downfall of FTX, it does seem like the superpower is lagging, and instead of providing regulatory clarity, threats, scares, and fines have been used. I mean just look at this...

As mentioned in the previous week's newsletter, Gary Gensler removed the ability for CEXs to participate in staking. Many crypto startups in the US have also been advised against considering the US, especially given the regulatory risks. For now, it seems all 👀 are on the SEC and the US regulatory bodies...

You'll never stop us!

OTHER HEADLINES

$FUNDING$

MEME OF THE WEEK

HODLing is tough as ever 😭

Aand that wraps it up for our newsletter! Hope you enjoyed the news, memes and analysis. See you next week!

For more, follow our Twitter (@runthechain)

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.