COIN - Coinbase: All About That Base
2024-04-12 08:00:00 ET
Summary
- Ethereum's Dencun upgrade has resulted in an explosive surge in daily transaction volume and revenue on Coinbase's Ether scaling chain Base.
- In less than a year, Base has already resulted in more gross profit than both Optimism and Arbitrum. Annualizing current rates, the Base sequencer will generate $185 million in revenue.
- As the lone sequencer on Base, the argument could potentially be made that Coinbase is opening itself up to additional regulatory scrutiny.
It's been a little over 4 months since I last covered Coinbase ( COIN ) for Seeking Alpha. Each of my last two COIN articles have focused mainly on Coinbase's Ethereum ( ETH-USD ) scaling network called "Base." In my prior note, I was fairly underwhelmed by the activity trend on Base as daily transactions were declining, stablecoin market was decreasing, and the network was losing share to L2 scaling peer Arbitrum ( ARB-USD ). Things have changed....
Coinbase: All About That Base