How Coinbase Is Building a Crypto Ecosystem to Rival Big Tech
The post How Coinbase Is Building a Crypto Ecosystem to Rival Big Tech appeared on BitcoinEthereumNews.com. Coinbase, once known primarily as a retail crypto exchange, now dominates institutional crypto custody with $404 billion in assets under management (AUM) as of Q4 2024 . This positions it as the largest crypto custodian globally, managing nearly 15% of the total crypto market cap. Clients range from MicroStrategy and BlackRock to the U.S. government, which uses Coinbase to custody seized Bitcoin . This custodial dominance mirrors traditional finance giants like JPMorgan ($700B market cap) but with a blockchain-native twist: Coinbase blends centralized trust with decentralized infrastructure. For instance, its smart wallet technology silently onboards users to DeFi through integrations like Morpho, allowing Bitcoin-backed loans directly within its app. Base: The Silent Growth Engine Coinbase’s Layer-2 blockchain, Base, has become a linchpin of its ecosystem strategy. Launched in 2023, Base now hosts 55% of all active addresses across Ethereum Layer-2 networks and generates 60% of their revenue. The sum of fees that were paid by users of the chain in gas fees| Source: Grow The Pie Daily trading volumes on Base-linked decentralized exchanges (DEXs) like Uniswap surpassed $3.2 billion in March, driven by meme coin activity and low fees. Unlike competitors such as Solana, which prioritize raw speed, Base leverages Ethereum’s security while offloading scalability to its network. The number of distinct addresses that interacted with a chain| Source: Grow The Pie All transaction fees on Base are settled in ETH, reinforcing Ethereum’s dominance—a symbiotic relationship that benefits Coinbase’s broader ecosystem. The approval of spot Bitcoin and Ethereum ETFs in 2024 marked a turning point. BlackRock’s iShares Bitcoin Trust (IBIT) alone attracted $58 billion in assets within a year, while Ethereum ETFs saw 17 consecutive days of inflows post-launch. Coinbase serves as the custodian for 95% of U.S. crypto ETFs, including IBIT and Fidelity’s offerings, cementing its role as the…
The post How Coinbase Is Building a Crypto Ecosystem to Rival Big Tech appeared on BitcoinEthereumNews.com.
Coinbase, once known primarily as a retail crypto exchange, now dominates institutional crypto custody with $404 billion in assets under management (AUM) as of Q4 2024 . This positions it as the largest crypto custodian globally, managing nearly 15% of the total crypto market cap. Clients range from MicroStrategy and BlackRock to the U.S. government, which uses Coinbase to custody seized Bitcoin . This custodial dominance mirrors traditional finance giants like JPMorgan ($700B market cap) but with a blockchain-native twist: Coinbase blends centralized trust with decentralized infrastructure. For instance, its smart wallet technology silently onboards users to DeFi through integrations like Morpho, allowing Bitcoin-backed loans directly within its app. Base: The Silent Growth Engine Coinbase’s Layer-2 blockchain, Base, has become a linchpin of its ecosystem strategy. Launched in 2023, Base now hosts 55% of all active addresses across Ethereum Layer-2 networks and generates 60% of their revenue. The sum of fees that were paid by users of the chain in gas fees| Source: Grow The Pie Daily trading volumes on Base-linked decentralized exchanges (DEXs) like Uniswap surpassed $3.2 billion in March, driven by meme coin activity and low fees. Unlike competitors such as Solana, which prioritize raw speed, Base leverages Ethereum’s security while offloading scalability to its network. The number of distinct addresses that interacted with a chain| Source: Grow The Pie All transaction fees on Base are settled in ETH, reinforcing Ethereum’s dominance—a symbiotic relationship that benefits Coinbase’s broader ecosystem. The approval of spot Bitcoin and Ethereum ETFs in 2024 marked a turning point. BlackRock’s iShares Bitcoin Trust (IBIT) alone attracted $58 billion in assets within a year, while Ethereum ETFs saw 17 consecutive days of inflows post-launch. Coinbase serves as the custodian for 95% of U.S. crypto ETFs, including IBIT and Fidelity’s offerings, cementing its role as the…
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