Blockchain

The strong ascent of Dogwifhat (WIF) has made it stand out among cryptocurrencies and captivated investors. Crypto markets are gearing up for the first weekend of the month, and memecoins in particular are showing strong signs of positive momentum.

Amidst the increased hope, the meme coin based on Solana experienced an incredible 320% rally last week, propelling WIF to the top 100 cryptos from a valuation of $1 billion or more. However, why has this ascent been so rapid?

Dogwifhat’s Rise: Bulls In Action

At the time of writing, the price of Dogwifhat had increased 35% to $1.20, and its trading volume had surged 75% to $388 million. Over the past day, the value of one WIF token has fluctuated between $0.83 and $1.32.

Withstanding sufficient bullish and bearish pressures, WIF has been trading within an ascending parallel channel since its debut. In spite of this, bulls should be prepared to fight fiercely against any bearish pressures that may arise.

As a result, we anticipate that the WIF price will first reach $1.5 after continuing its upward consolidation along the parallel channel’s upper resistance. If the bulls keep on their momentum, getting to $2 might not be too difficult for dogwifhat pricing.

Robinhood Europe’s IPO of the WIF token occurred at the same time as Dogwifhat’s stratospheric ascent in the cryptocurrency hierarchy. European customers of Robinhood can now trade WIF in addition to a plethora of well-established tokens, such as XRP, Cosmos, and Polkadot.

The fucking hat stays on.

Who is $WIF me? pic.twitter.com/Cq0eNp6JTp

— Arthur Hayes (@CryptoHayes) March 1, 2024

The anticipation for the Robinhood listing was reaching a peak, and former BitMEX CEO Arthur Hayes was among the many who took to social media to voice their opinions.

X influencer “OSF” has fueled rumors that other major exchanges like Coinbase, Binance, or Gemini may soon join Robinhood in listing Dogwifhat, which is a huge deal for everyone.

Honestly mental that $WIF is about to hit $1bn market cap and still isn’t listed by @coinbase, @Gemini or @binance. pic.twitter.com/Jk0gpWy5ME

— OSF (@osf_rekt) March 1, 2024

Whale Confidence Boosts Dogwifhat’s Surge

Separately, Lookonchain, an on-chain data source, uncovered substantial whale activity in the WIF area. A large investor recently bought more over 673,000 WIF tokens at $1.36 each after withdrawing around $918,000 worth of Solana from Binance.

Also, this whale has clearly seen the potential in WIF; he has spent $2 million to buy 2.82 million tokens at $0.71 each, demonstrating his faith in the project. This whale’s activities, which resulted in an unrealized profit of almost $1.35 million, add to the positive attitude around dogwifhat (WIF) and its prospects for significant gains in the coming months.

Featured image from Pexels, chart from TradingView

There are lots of surprises during the bull season. Occasionally, during a bull run, coins that have been falling or thought to be dead can rise again, and tokens with defective models can self-correct. In the instance of Pepe Coin (PEPE), which was thought to have lost value and utility but has recently gained attention and is amassing a large number, this is the situation.

With Bitcoin getting close to its peak price and the market rallying, the cryptocurrency space is a flurry of activity. Memes have particularly profited from this renaissance because of their widespread popularity and low cost, which draw in a diverse range of investors.

Pepe Coin Climbs Amid Increased Memecoin Interest

Pepe Coin has stood out in this surge of interest, coming in third place in the meme coin rankings, only behind Shiba Inu (SHIB) and Dogecoin (DOGE). This rise suggests that investors are becoming more interested.

PEPE had a very diverse trajectory and became a billion-dollar asset at periods when there was speculation of a huge trend reversal. The market cap rise of the memecoins was increasing dramatically.

The weekly and daily chart patterns, when analyzed, show consistent growth that might perhaps reach new heights. February saw the start of Pepe’s value climb, which culminated in a 200% spike in just one week.

Today, Pepe reached a top of $0.0000041, and registered an impressive 255% rally in the weekly timeframe. The coin’s performance was equally notable in the 24-hour timescale, with a nearly 50% gain. The weekly chart shows Pepe’s value is still above the critical resistance level, indicating that the market is confident and that there may be further rises ahead.

The bulls will regain momentum and challenge the price’s upper resistance level of $0.00000315 if the market pushes the price above the barrier level of $0.00000280. Additionally, if the bulls maintain their hold on the market, it will rise further and get ready to test its upper boundary of $0.00000350.

Meme Coin Profits Up

In the meantime, a scenario of note occurred when six prominent wallets made trades and sold approximately 2 trillion $PEPE coins between them. Sales for the transaction totaled about $4.37 million, while profits came close to an astounding $2 million. Token exchanges of this size demonstrate the extent of market activity around $PEPE during this upswing.

Although lacking the technological sophistication of Ethereum, its merits reside in its active participation by the community and the capacity for social media to go ubiquitous.

Similar to other meme coins, Pepe Coin is subject to significant fluctuations in value due to celebrity endorsements and community sentiment. This renders it a potentially lucrative investment opportunity for individuals adept at navigating the tumultuous realm of internet meme culture.

With Pepe Coin experiencing a remarkable 250% surge, all eyes are on what March holds for this unpredictable cryptocurrency. As investors eagerly anticipate further developments, the question lingers: Will Pepe Coin continue to defy expectations and unveil more surprises in the coming month?

Featured image from Pexels, chart from TradingView.com

Historical data suggests that no Bitcoin cycle has peaked without experiencing significant double-digit corrections. These downturns, while daunting, have historically presented lucrative ‘buy-the-dip’ opportunities for investors.

As Bitcoin continues its ascent, with its price hovering above $62,000, the anticipation of a potential correction looms large, offering a window into the cyclical nature of cryptocurrency markets.

Market Maturity And Correction Patterns

Seasoned investor CryptoJelleNL recently shared a post on X earlier today pointing towards an imminent correction in the 20-25% range for Bitcoin.

Based on cycle analysis, this predicted dip indicates a potential drop to the $46,500 range, earmarking an opportunity for investors to bolster their positions in the leading crypto.

Corrections are an essential part of a #Bitcoin bull market — but with each passing cycle, the dips become shallower.

This cycle, it looks like ±20-25% will be the sweet spot for dip-buying.

Your job is to be ready to take advantage when it comes. pic.twitter.com/xrI7iKfiPR

— Jelle (@CryptoJelleNL) March 1, 2024

This perspective gains further credence when examining the diminishing severity of corrections as the market matures; the 2016-2017 Bitcoin cycle was characterized by seven substantial corrections, with an average pullback of 32%, significantly impacting investor sentiment and portfolio values.

In the subsequent cycle that propelled BTC to its current all-time high of $69,000, the market conditions were considerably more lenient for bullish investors: experiencing five downturns, the average decline was limited to 24%.

Fast forward to the present cycle, and the landscape appears somewhat different. With only four notable corrections recorded so far and an average pullback of 21%, Bitcoin should see a notable pullback, though not as harsh as previous ones. This indicates the market’s growing maturity.

Additionally, this evolution suggests that while corrections remain a staple of the Bitcoin experience, their capacity to deter the asset’s long-term trajectory diminishes.

Navigating Bitcoin Upcoming Corrections

The potential correction for Bitcoin, as indicated by CryptoJelleNL is echoed by other market observers. Galaxy Digital Holdings CEO Michael Novogratz has also highlighted the possibility of a temporary dip, attributing it to factors such as excessive leverage among younger investors.

Despite these forecasts, Bitcoin’s current momentum remains strong, with recent price action showing a near 2% increase in the past 24 hours, underscoring the asset’s sturdy appeal.

In addition to speculative analysis, real-world examples of investor success stories provide tangible evidence of Bitcoin’s enduring allure. A notable instance is a smart whale who, per lookonchain analytics, invested $1.39 billion in Bitcoin in July 2022 at an average price of $21,629 per BTC.

With BTC price now surging past the $62,000 mark, this investor’s unrealized profit is a testament to the strategic potential of timely market entry and the value of patience in the face of volatility.

A smart whale has accumulated 22,670 $BTC($1.39B) at an average price of $21,629 since $BTC entered the bear market in July 2022.

He currently has an unrealized profit of more than $900M!https://t.co/gT1kfWq5YF pic.twitter.com/BTcijZB0IA

— Lookonchain (@lookonchain) March 1, 2024

Featured image from Unpslah, Chart from TradingView

BlackRock, the world’s largest asset manager, announced the iShares Bitcoin Trust ETF (IBIT39) launch in Brazil on Thursday. Starting today, Friday, March 1, shares of this index fund, which tracks the spot price of Bitcoin (BTC), will be traded on the Brazilian Commodities and Futures Exchange, known as B3.

BlackRock Launches IBIT39 Bitcoin ETF In Brazil

Karina Saade, president of BlackRock in Brazil, highlighted the company’s commitment to providing high-quality access vehicles to investors in the digital asset market. She stated:

IBIT39 is a natural progression of our efforts over many years and builds on the fundamental capabilities we have established so far in the digital asset market.

Felipe Gonçalves, Superintendent of Interest and Currency Products at B3 discussed the growth of the listed crypto market in Brazil. He noted that the market, which started in 2021, now has 13 ETFs with total assets of R$2.5 billion, or about $505 million.

While the market experienced fluctuations in its early years, it reached an eye-catching daily trading volume of R$30 million reais ($6.6 million) by the end of last year, according to local media reports in Brazil. 

Gonçalves mentioned that investors in crypto ETFs include institutional investors, such as funds, and individual investors, with a current number of 170,000. Liquidity in the market is provided by non-residents investing in B3 as a whole.

IBIT39 will reportedly have a management fee of 0.25%, with a one-year waiver that reduces the fee to 0.12% once the fund reaches its first $5 billion in assets under management (AUM). The product will be made available to the general public, allowing broader participation in the Bitcoin market.

$7.5B Net Inflow In Bitcoin ETFs Since Launch In The US

BlackRock’s IBIT (iShares Bitcoin Trust) ETF has emerged as a notable player in the US ETF race, countering a significant outflow from Grayscale’s Bitcoin Trust (GBTC).

BitMEX research data shows that on February 29, 2024, positive flows amounted to $92 million for the day. Notably, BlackRock and GBTC offset each other, experiencing $600 million in opposite directions. The data shows that since the ETFs began trading on January 11, 2024, there has been an impressive net inflow of $7.5 billion.

The overall holdings of spot funds, which directly hold Bitcoin, stood at 776,464 BTC (equivalent to $47.7 billion) on Friday morning, according to BitMEX Research. It’s essential to consider that the total BTC supply currently in circulation is 19.64 million, with a maximum limit of 21 million. 

With this context, the fact that the ETFs have secured 4% of the total BTC supply is a significant milestone. It demonstrates the growing demand for Bitcoin among investors utilizing these index funds to gain exposure to the cryptocurrency.

BTC continues to consolidate above the $62,000 mark, rising 1.3% in the past 24 hours.

Featured image from Shutterstock, chart from TradingView.com

As Bitcoin (BTC) is currently in a bull run, eclipsing the $60,000 mark once again, the spotlight has turned to ADA performance in comparison. With a history that mirrors Ethereum’s (ETH) early days, ADA’s journey through the market’s ups and downs has prompted a closer examination of its potential trajectory.

The eighth-largest cryptocurrency by market cap, ADA has seen its fair share of highs and lows, with a recent uptick in price sparking both interest and speculation about its future.

Particularly, Cardano’s current trading level, lingering below the highs of the March-April 2021 bull run, has raised eyebrows, especially when juxtaposed with Bitcoin’s bullish momentum.

During the last peak period when BTC hit $60,000, ADA traded above $1. Yet, as Bitcoin revisits its former glory, ADA’s valuation stands around $0.6, presenting a curious case for analysis.

Dan Gambardello, a crypto analyst have drawn parallels between ADA’s price action and Ethereum’s historical performance, suggesting that ADA may be on the cusp of a “significant breakout”, akin to ETH’s journey post-2017.

CARDANO Bull Indicator Almost ACTIVATED! (Truth Behind ADA Price!)

Intro 00:00
Cardano price concern 00:50
Is Cardano price lagging this cycle? 1:30
Ethereum offers helpful context 2:30
Cardano is within a normal move 8:00
Cardano bull indicator almost triggered! 9:25 pic.twitter.com/8tRlwEj8AO

— Dan Gambardello (@cryptorecruitr) March 1, 2024

ADA Historical Echoes With Ethereum

Dan Gambardello’s comparison of ADA to Ethereum’s past trajectory sheds light on the developmental parallels and market behavior between the two cryptocurrencies.

Gambardello points out that ADA’s entry into the market towards the tail end of the 2017 bull run placed it in a different starting position than ETH. Despite this, both currencies achieved notable highs during that period.

The subsequent bear market phases for both ADA and ETH were marked by substantial corrections and periods of foundational development, crucial for their long-term viability, according to Gambardello. The analyst added that the emergence of Decentralized Finance (DeFi) projects on both platforms, with Uniswap for ETH and SundaeSwap for ADA, underscores the parallel paths of “innovation and growth.”

This historical perspective suggests that ADA’s current position and 78% dip from its peak might not be as dire as it appears. Instead, it could indicate a maturing phase that precedes significant growth, much like Ethereum experienced after its initial setbacks.

The comparison offers a hopeful outlook for ADA, positioning it as a digital asset with the potential to recover and surpass its previous highs as it follows in Ethereum’s footsteps.

Cardano’s Potential Unfolding

Crypto analysts Trend Rider and Ali’s recent analysis has also amplified the optimism surrounding Cardano’s future. Trend Rider’s alert on a potential new all-time high for ADA, backed by a significant increase in the Trend Strength Indicator, echoes the sentiment of a pending rally reminiscent of ADA’s climb to $3.6.

$ADA Bull Run loading.

Both our Moving Average Ribbon and our Money flow oscillator are bullish again after 200 Weeks!

These are undenieable macro facts.

Enjoy the ride, I will monitor the chart each week in case there are warning signals

PS: Free trading course… pic.twitter.com/sC3fhRZGl0

— Trend Rider (@TrendRidersTR) February 29, 2024

Furthermore, Ali’s projection of ADA hitting $8 in the upcoming bull run, based on a breakout pattern in the weekly price charts, adds to the growing consensus of Cardano’s untapped potential.

The #Cardano breakout may come earlier than expected! Still, if history repeats itself, we are anticipating $ADA to rise to $0.80, retrace to $0.60, and then enter a bull run toward $8 by January 2025! pic.twitter.com/HuVAxFEg9Y

— Ali (@ali_charts) February 15, 2024

Featured image from Unpslah, Chart from TradingView

Cardano (ADA) is currently riding on the back of a 14% gain in the past seven days, allowing the cryptocurrency to break past the $0.70 price level for the first time since May 2022. According to crypto exchange Changelly, Cardano is poised to continue on this price growth and break over $1, $10, and $100 in the coming years and decades.

Changelly Predicts Exponential Cardano Price Growth

Cardano is one of the biggest cryptocurrencies by market cap with a cap of over $23.5 billion. Although ADA has since retraced some of its gains earlier in the week and is now trading below $0.77, it ended February with a 35% gain amidst a wider inflow of money into the crypto market. Current fundamentals have prompted experts to forecast a continued price surge in March.

According to Changelly’s prediction, ADA will continue on this price growth to make a steadfast breakout above $0.70 and end the month at a maximum of $0.751. Notably, analysts at the exchange also looked at future price points for ADA, predicting very bullish prices.

In its prediction, the exchange noted ADA would break over $10 in 2030. With the cryptocurrency now trading at $0.66, this would mean a 1,400% growth from the current price level. Looking further into the future, Changelly expects this price growth to continue into the next decade, allowing ADA to eventually break over $165 by 2040 and end the year around $600.

How Feasible Is This Bullish Prediction?

Cardano has had its fair share of ups and downs in the past few years. Recently, the blockchain network saw a 90% jump in the creation of new wallet addresses, indicating increased network activity and interest in the network. However, the blockchain has also been subjected to negative remarks, with multiple reports hinting that Cardano’s network activity has been nothing but fabrications. Particularly, a recent report termed ADA as a dead coin.

Despite this, some holders and experts remain optimistic. For ADA to cross over $10 and $100 per coin, mainstream adoption needs to happen. As the crypto industry, which is spearheaded by Bitcoin, becomes more mainstream, Cardano is poised to benefit from greater adoption.

While $165 per ADA sounds overly optimistic now, if Cardano can achieve its ambitious goals, gain mainstream interest and adoption, and attract institutional investment from traditional investors, that price target may not be so unrealistic after all. At the same time, this isn’t impossible, as ADA has delivered over 3,000% profit for its holders in the past.

The demand for spot Bitcoin exchange-traded funds (ETFs) has surged since their recent approval on January 10, with BlackRock’s IBIT Bitcoin ETF leading the way. This ETF has reached impressive milestones in less than two months, attracting significant investor interest and opening doors for various market participants to invest in the largest cryptocurrency directly. 

As institutional and retail investors flock to these new investment vehicles, market experts predict a bullish trend and anticipate a potential price surge.

Bitcoin ETF Frenzy

According to Bloomberg ETF expert Eric Balchunas, BlackRock’s IBIT Bitcoin ETF has quickly joined the esteemed “$10 billion club,” reaching the milestone faster than any other ETF, including Grayscale’s Bitcoin Trust (GBTC), noting that only 152 ETFs out of 3,400 have crossed the threshold.

Balchunas notes that IBIT’s ascent to this club was primarily driven by significant inflows, which accounted for 78% of its assets under management (AUM). This reflects the growing appetite for Bitcoin exposure among investors seeking diversified and regulated investment options.

In particular, the current trajectory of the ETF market paints a picture of resilience and bullish sentiment in the market. Equity ETF flows, and leveraged trading levels are positive indicators, although they have not yet reached the euphoria seen in 2021, Balchunas notes. 

However, Bloomberg’s new BI ETF Greed/Fear Indicator, which incorporates various inputs, highlights the optimistic outlook shared by ETF investors, as seen in the chart below.

On this matter, crypto analyst “On-Chain College” went to social media X (formerly Twitter) to emphasize the significant demand for Bitcoin as evidenced by its rapid departure from exchanges. 

In its analysis, On-Chain College highlights that Bitcoin ETFs buy approximately ten times the daily amount of BTC mined. At the same time, the upcoming halving event will further reduce the mining supply. The analyst predicts when demand will exceed available supply, leading to potential upward price pressure.

Highest Monthly Close Since 2021

Bitcoin’s recent market performance has caught the attention of wealth manager Caleb Franzen, who highlights the significance of the highest monthly close since October 2021. 

Franzen further emphasizes the bullish momentum by pointing out that the 36-month Williams%R Oscillator has closed above the overbought level for only the fourth time in history. Historical data reveals impressive returns following such signals, indicating the potential for substantial gains in the coming months. 

Additionally, Franzen notes the changing dynamics of the market, with increased institutional participation and the ease of retail onboarding through ETFs.

Franzen presents a compelling case for the bullish nature of overbought signals, urging market participants to view them as momentum indicators rather than signals to fade. Previous instances of overbought signals have resulted in significant Bitcoin price appreciation:

February 2013: +3,900% in 9 months
December 2016: +1,900% in 12 months
November 2020: +260% in 12 months

While acknowledging diminishing returns in each cycle, Franzen highlights the unprecedented level of institutional participation and the ease of retail access through ETFs. 

Even if Bitcoin were to match the +260% gain from the November 2020 signal, it would reach a price of $180,000, surpassing Franzen’s minimum cycle target of $175,000. 

Ultimately, Franzen notes that bull markets are typically characterized by a rising ETHBTC ratio and a falling BTC.D (Bitcoin dominance). While these characteristics have yet to manifest fully, Franzen suggests that a multi-quarter rally in the broader cryptocurrency market may be on the horizon.

Featured image from Shutterstock, chart from TradingView.com 

Oliver Michel, founder and CEO of German-based venture capitalist firm Tokentus Investment AG, has given a bullish price prediction for the XRP price. According to him, XRP could hit $10 soon enough. 

XRP Price To $10 Is Just The Beginning

Michel mentioned during an interview with Der Aktionär, a leading German finance magazine, that he expects XRP to rise to between $5 and $10 in the first wave of its parabolic move to the upside. Interestingly, he added that XRP would eventually hit three to four figures and didn’t seem worried about XRP’s current price action. 

Meanwhile, Michel revealed that he is invested in the XRP tokens as he has them both in his family office and with his company, Tokentus. The same applies to Ripple shares, which he stated he purchased through an SPV (Special Purpose Vehicle). 

Michel is no stranger to the XRP ecosystem, considering that his company partnered with Ripple last year in an effort to grow and increase the adoption of the XRP Ledger (XRPL). During the interview, Michel also offered his thoughts on Ripple as a “professional company” and sounded so bullish on what the crypto firm was building with its Payment service. 

He used the opportunity to elaborate further on how Ripple was simplifying cross-border transactions with the help of the XRPL and XRP tokens. Ripple is known to settle these transactions through its blockchain, with XRP serving as the utility token, and these XRP tokens are then converted to the fiat currency of the recipient’s choice. 

XRP To Become The “World Reserve Bridge Currency”

Michel stated that XRP could become the “world reserve bridge currency” once countries implement their CBDCs (Central Bank Digital Currency). Ripple’s XRPL is already being touted as the go-to chain for CBDC settlements. The crypto firm had also revealed that they were already actively working with more than 20 Central banks on CBDC initiatives. 

The Tokentus founder also believes it won’t be long before other Central banks fall back on Ripple to help them implement their CBDCs. He noted that the pressure was piling up on these banks to act now to avoid an impending economic collapse. XRP is expected to play an integral role when this all happens. 

Ripple’s XRPL also looks set to act as the intermediary between all these CBDCs when the time comes. Bitcoinist once reported how the network’s clawback feature boosts the prospects of CBDCs being implemented on it. 

At the time of writing, XRP is trading at around $0.58, down over 1% in the last 24 hours, according to data from CoinMarketCap. 

The crypto market has shown an incredible performance over the past week. Bitcoin has sustained momentum and risen above the $60,000 level, reaching $64,000.

The levels reached at the end of February have suggested to many investors that March could be an even more impressive month for the current bullish rally.

However, no prediction is set in stone, as many factors could swing investors’ sentiments and move the trends in the opposite direction. At the moment, the crypto market seems to have taken a small pause to catch its breath.

Crypto Market Momentarily Slows Down

The global crypto market reached a significant milestone for this bullish run a few days ago. As reported, the total crypto market cap hit $2T on February 27, an accomplishment not seen since April 2022.

As March begins, the market cap for the crypto market sits at $2.3 trillion, representing a 17.97% surge in the 7-day timeframe. This growth has surpassed the level established in early 2022 and potentially clears the path to the $2.4 trillion mark seen in December 2021.

Nonetheless, the market rise seemingly slowed down momentarily. The current market cap of $2.31 trillion represents a modest 1.32% decrease over the last day, according to CoinMarketCap data.

Similarly, the total crypto market trading volume was around $127.9 billion at writing time, registering a significant 35.77% drop from yesterday.

The data shows that Bitcoin and Ether have faced over 40% market activity decrease compared to the trading volume registered 24 hours ago. Similarly, some of the largest memecoins showed a slowdown in performance.

As the list below shows, Dogecoin (DOGE) registered a 5.9% price drop on the last day. Likewise, Shiba Inu’s (SHIB) price decreased by 5.8% in the same timeframe.

On the contrary, Solana (SOL) performed better on the last day than the top ten cryptocurrencies, registering a 4.1% price surge.  SOL’s $134 price places it alongside DOGE as the best-performing cryptocurrencies among the top ten in the last seven.

Among the largest gainers on the last day, PEPE reversed yesterday’s 12% price drop after registering a 10.9% growth during the past 24 hours. Similarly, the dog-themed memecoins dogwifhat (WIF) and (BONK) registered a price increase of 20,66% and 6.65%, respectively.

Bitcoin And Ether Remain Strong Amid The Market Volatility

Some analysts expect a significant halving-related drop in Bitcoin’s price. Meanwhile, the King of crypto has shown strong resistance above a massive support wall, as crypto analyst Ali Martinez suggests.

Over 1 million addresses are buying over 671,000 BTC within the $60,000 and $62,000 price range. Which, according to the analyst, highlights a strong investor confidence. This confidence could be a crucial support level and a cushion against a future price drop.

#Bitcoin holds above a massive support wall, with 1 million addresses buying over 671,000 $BTC within the price range of $60,334 to $62,155.

This accumulation zone highlights strong investor confidence and could serve as a crucial level of support for #BTC, potentially… pic.twitter.com/lmghohWR1U

— Ali (@ali_charts) March 1, 2024

At writing time, the flagship cryptocurrency trades at around $62,052.71, which only accounts for a 1% decrease from the day before. BTC has increased over 21.8% in the last week, and it’s only 10.34% lower than its all-time high (ATH) of $69,000 registered in November 2021.

Likewise, it’s worth noting that Ether (ETH) has been showing a robust performance in the past few days amid the volatile crypto market. Maintaining its price range in the past 24 hours, the ‘king of altcoins’ registered only a 1.8% price decrease from yesterday. ETH currently trades at $3,411.88, representing a notable 16.2% rise in the past week.

Adam Cochran, a partner and professor, is bullish about OP, the native token of Optimism, the layer-2 scaling solution for Ethereum. 

Taking to X, Cochran is convinced OP is undervalued, pointing to the significance of Coinbase and the brand it has created over the years as a crypto exchange and investor in multiple products. In 2023, Coinbase backed the development of Base, a layer-2 scaling solution for Ethereum that uses Optimism infrastructure for its optimistic roll-up. 

OP Will Rocket Because Of CoinBase And Base

In coming up with this assessment, the investor highlights Coinbase’s vast user base and ability to drive retail adoption towards Base potentially. And, as aforementioned, since Base uses Optimism, the expected adoption spike will significantly boost OP from current spot levels. 

Cochran argues that the “power of discoverability” associated with Coinbase, a brand that facilitates billions of dollars in daily trading, will be crucial to Optimism’s success. This is particularly relevant when looking at OP prices when writing.

When writing, OP is stable but up 220% from October lows. The token has been trending higher, benefiting from the broader crypto rally. Even so, though in an uptrend, OP has not reclaimed 2023 highs of around $4.2.

To drive the point home, Cochran compares how the BNB Chain blew up in the number of active users. In the last bull run, the chain had an active decentralized finance (DeFi) and non-fungible token (NFT) ecosystem. The BNB Chain’s popularity and soft landing is because the smart contracts platform is associated with Binance, the world’s largest cryptocurrency exchange. 

Further to the point, the success of Solana, the partner argues, lends its success to the now-defunct FTX. At its peak, FTX injected billions to fund the development of Solana. It was also actively involved in financing some of Solana’s active protocols. 

The Great Convergence Of Supportive Events

Presently, Coinbase is streamlining its operations, recently stopping support for Bitcoin, Litecoin, and other UTXO tokens via Coinbase Commerce. Their focus is on Ethereum-compatible tokens, which could provide hints that Coinbase Commerce might soon be integrated into Base.

From the protocol level, Ethereum plans to implement upgrades to make transacting on layer-2 platforms even cheaper. The Dencun Upgrade is scheduled for March and will see Ethereum enhance as part of its long-term scaling roadmap.

L2Beat data on March 1 shows that Optimism has a total value locked (TVL) of $7.8 billion, roughly half that of Arbitrum. Meanwhile, Base has been rising up the rankings, commanding a TVL of approximately $1 billion.