Thu, May 09, 2024 at 08:42

Joy
- Hey Annie, have you heard about the latest report by Bitwise?
- They've compared Coinbase to Amazon!🤯
Annie
- Really?
- That's a big statement.
- What's the basis of this comparison?
Joy
- Well, it's all about the Base Layer 2 network.
- It's a part of Coinbase's business that's been flying under the radar.
- But it's been making some serious waves!🌊
Annie
- Base Layer 2 network?
- I'm not familiar with that.
- Could you explain it a bit?
ADward
- Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅
Joy
- Sure thing!
- So, Base was launched last August on Ethereum.
- It's designed to increase the blockchain's throughput and reduce costs.
- Imagine it like a bar tab - it groups transactions together and settles them in batches.
- This makes transactions super cheap and fast!⚡
Annie
- Oh, I see!
- So it's like a more efficient way to process transactions.
- But how does this relate to Coinbase's financial results?
Joy
- Great question!
- Coinbase has been doing really well lately.
- They reported $1.6 billion in net revenue, a 116% increase from last year, and profits of $1.2 billion.
- But despite these strong numbers, their stock has been trending downwards.
Annie
- That's strange... Why would the stock go down if they're doing so well?🤔
Joy
- That's the million-dollar question!
- Bitwise thinks the market might not fully appreciate Coinbase's strengths.
- But they're highlighting the potential of the Base Layer 2 network.
- It's been growing like crazy!🚀 In the first quarter, it saw a 74% increase in transactions and generated $27.4 million in transaction fees.
Annie
- Wow, that's impressive!
- So, is this why they're comparing Coinbase to Amazon?
Joy
- Exactly!
- Just like Amazon evolved from an online bookstore to a retail giant and a dominant force in cloud computing, Coinbase could evolve from a crypto brokerage to a fundamental infrastructure provider for the crypto industry.
Annie
- That's a big leap.
- But if they can pull it off, it could be a game-changer.
- So, is this good news or bad news for the market?
Joy
- Well, if you ask me, it's definitely good news!
- If Coinbase becomes a core infrastructure provider for the crypto ecosystem, it could have a huge impact on the market.
- And that would be a very big deal indeed!😄
- To sum up, this article is considered a 😍Bullish for investors!!