Crypto exchange Coinbase’s new layer 2 blockchain Base had a rough start, drawing a stream of complaints from users on social media. The test network for the Ethereum scaling tool experienced problems related to an issue with Coinbase wallets, which incorrectly estimated how much gas was required to execute transactions, meaning the transactions couldn’t be processed. Plus, Coinbase software engineer Roberto Bayardo said that high demand from users overwhelmed the protocol. Base forms the core of Coinbase’s strategy to expand into the developer business in order to diversify its revenue.
Coinbase
Yearn Finance’s YFI token surged to its highest level in nearly six months Friday after developers said they will introduce a liquid staking derivatives token. YFI surpassed $10,000 in Asian morning hours to prices not seen since September 2022, as part of a 39% increase this week, with trading volume increasing fivefold. Developers said the forthcoming token would give users exposure to a basket of liquid staking derivatives, which analysts say can help active investors diversify risk.
The Litecoin Foundation will work with Metalpha Technology Holding (MATH), a Nasdaq-listed wealth manager, to develop less carbon-intensive mining products for the Litecoin ecosystem. The partnership will focus on facilitating renewable energy use and increasing energy efficiency. Metalpha will also develop financial derivative products for LTC tokens and support miners with hedging products against market risk.
Market Insight: Hope for Optimism
CoinGecko
Cryptocurrencies in the Optimism ecosystem rose after crypto exchange Coinbase unveiled its Ethereum scaling product called Base that will use Optimism’s technology. Optimism’s native token OP gained nearly 12% in the last 24 hours, CoinDesk data shows, with several other tokens related to the network also rising.
SONNE, the native token of Optimism-based lending protocol Sonne Finance, is up around 80% in the last 24 hours, according to CoinGecko data. OPX, the utility token of OPX Finance, has more than doubled from around $3 to over $6.70, and Perpetual Protocol’s PERP is up over 30%.
The chart shows the number of transactions on Ethereum layer 2 scaling tools Arbitrum and Optimism has surpassed that on Ethereum’s mainnet for the first time on record.
The data shows an increased preference for cheaper and faster layer 2s because of rising fees on Ethereum. Average transaction fees on Ethereum have tripled since November, according to IntoTheBlock.
“Progress towards a roll-up centric Ethereum is already on its way and is bound to continue to accelerate with Base’s upcoming launch,” IntoTheBlock said in the weekly report published early Friday.
– Omkar Godbole
Over the past few months, CoinDesk has been developing a reward system for Consensus 2023 attendees to bring long-term value. We’ve partnered with Art Blocks Engine, TokenProof and Passage Protocol to launch the Consensus Multi-Year, Multi-Tiered NFT Ticket, coming on March 2. Learn more.
Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
