The price of Coinbase (COIN), a cryptocurrency exchange, rose slightly in the past week. This was due to the rebounding American stock market and Bitcoin’s death-cross pattern remaining elusive. The stock price soared to $164.42, a 12.7% increase from the lowest point of this month. The price is still 41% lower than the peak of this year.
Major headwinds
Coinbase faces major challenges as the cryptocurrency market is in decline and competition has increased within the decentralized and centralized exchange industries.
Bitcoin, which is the largest coin in the market, has been below $60,000. Ether, on the other hand, has seen a lot of selling.
When cryptocurrencies do well, centralized exchanges such as Coinbase prosper because they usually have more volume.
The Block data shows that the volume of centralized exchanges reached its peak in March, when most coins were on a high. In the last few months, it has been fairly stagnant as many coins have pulledback.
Coinbase also has lost its market share to other crypto exchanges. The data shows that over $66 billion worth of transactions were handled by the exchange in just one month.
Binance was the largest exchange in terms of volume, handling $448 billion during the month. Bybit, Crypto.com Huobi and OKX, on the other hand, dealt with $154 billion each, while Crypto.com handled $68 billion and Bybit handled $66 billion. Coinbase’s popularity has dropped since it used to be the second largest exchange after Binance.
Coinbase will also be facing pressure on its earnings as a result of the substantial withdrawals from Ethereum and Bitcoin ETFs over the last few weeks. Ethereum ETFs had a cumulative net outflow of $582 million, while Bitcoin funds lost significant sums over the past few weeks.
Coinbase is the largest player in the industry of crypto ETFs, offering custody services to Blackrock, Ark Invest and Bitwise.
The base blockchain is flourishing
Base Blockchain is performing well, despite the fact that Coinbase only launched it last week.
Base is an application-building network for layer-2 networks. It allows developers to create applications in industries such as decentralized finance (DFT), non-fungible Tokens (NFT), gaming, and more.
Base, as a layer-2-network, helps supercharge Ethereum by increasing the transaction speed and lowering costs. It can process thousands of transactions per minute at low costs, unlike Ethereum.
As more and more people choose layer 2 network due to their benefits, there are indications that Base is performing well.
DeFi Llama ,shows Base attracted 348 developers to the decentralized financial industry. The dApps are worth over $1.5 billion, which makes it the 6th largest network after Ethereum, Tron and BNB.
Polygon is the leader in this industry. It’s the second largest layer-2 network after Arbitrum. Its network also has more than 1.5 million addresses.
Base is a major player in stablecoins, with over $3 billion invested. USD Coin (USDC) is the most common stablecoin in the ecosystem, accounting for 95% of all coins.
Base is now the third largest chain of decentralized exchanges. In the past seven days, its DEX platforms have handled over $3.1billion in volume.
Base Blockchain is now making money. TokenTerminal data shows the chain made $57,000,000 in fees last year. This is a relatively small amount when compared to Ethereum and Tron, which have each made more than $1 billion.
Base, however, could be a major part of Coinbase’s ecosystem, particularly if it decides to release its own token. Arbitrum’s market capitalization is over $1.8 billion, while Polygon has been valued at more than $1.3 billion. Over $1.8 billion is the value of Optimism.
A Base Blockchain token would therefore be worth over $2 billion, or more if cryptocurrency recovers.
Stock price analysis by Coinbase
On the daily chart, it is clear that Coinbase’s share price has recently formed a chart pattern of a triple top and fallen below its neckline to $195.05. This is usually one of the worst patterns on the market.
Coinbase also hovers at the Fibonacci 50% Retracement. There are also signs of a possible death cross as the moving averages 200 and 50 days are close to crossing each other.
There are indications that the stock may have a negative breakout if this occurs, as the sellers will target the important support level of $100.
The post Coinbase Stock Nears Death Cross; Base Blockchain Could Be A Catalyst may be updated as new information becomes available
This site is for entertainment only. Click here to read more
