Base Layer 2 （L2） network, built on Ethereum, saw an $11 million increase in Total Value Locked （TVL） following Coinbase’s better-than-expected Q2 earnings report, reflecting renewed positive sentiment.
Points
- Base L2 network’s TVL increased by $11 million, from $1.666 billion to $1.677 billion.
- Coinbase’s Q2 earnings beat expectations, reporting a profit of $0.14 per share on revenue of $1.40 billion.
- CEO Brian Armstrong highlighted partnerships and regulatory clarity as key factors for optimism.
The Base Layer 2 （L2） network, built on Ethereum and utilizing Optimism’s OP Stack, has experienced a significant capital inflow, with its Total Value Locked （TVL） increasing by $11 million in the past 24 hours. This surge in TVL, from $1.666 billion to $1.677 billion, comes in the wake of Coinbase’s Q2 earnings report, which exceeded market expectations.
Coinbase’s Q2 Earnings Beat
Coinbase reported a profit of $0.14 per share on revenue of $1.40 billion for the second quarter, surpassing Wall Street estimates, which had anticipated a profit of $0.94 per share on revenue of $1.38 billion. The exchange’s subscription and services unit, comprising non-trading-related businesses, contributed $599 million to the total revenue.
Positive Sentiment and Partnerships
The positive sentiment following the earnings report has been further bolstered by Coinbase CEO Brian Armstrong’s acknowledgment of partnerships with Bitcoin and Ethereum ETF issuers. Coinbase offers custody services to multiple ETF issuers, ensuring the secure preservation of tokens for investors. Armstrong also highlighted the need for regulatory clarity and expressed optimism about the future of crypto regulation in the US.
“We are increasingly optimistic that the next administration, whether Democrat or Republican, will be constructive on crypto. The rhetoric has shifted,” Armstrong said during the post-earnings conference call.
Three Factors Supporting Optimism
Armstrong outlined three key factors that support his optimism:
- Politicians from both sides of the aisle are increasingly supportive of comprehensive crypto legislation.
- The US Securities and Exchange Commission （SEC） has dropped some investigations against the industry, and spot ETF approvals are a positive sign.
- The Supreme Court’s decision to overturn the Chevron deference has weakened the regulator’s enforcement drive against the industry. Notably, the attorney who overturned the Chevron doctrine is now on Coinbase’s board of directors.
Future Developments
Coinbase also announced plans to launch a crypto index fund, dubbed Coinbase 500, as part of its product roadmap. This initiative reflects the exchange’s efforts to expand its offerings and cater to the growing interest in crypto investments.
解説
- Earnings Impact: Coinbase’s strong Q2 earnings report has positively impacted investor sentiment, leading to an increase in Base L2 network’s TVL. Positive earnings can boost confidence in the broader crypto market and attract more capital inflows.
- Partnerships and Regulatory Clarity: Strategic partnerships with ETF issuers and the push for regulatory clarity highlight the importance of secure and compliant crypto services. These factors can enhance trust and attract institutional investors.
- Legal and Regulatory Developments: The Supreme Court’s decision and the SEC’s shifting stance on crypto regulation indicate a more favorable environment for the industry. These developments can reduce uncertainty and encourage further investment in crypto assets.
- Product Innovation: Coinbase’s plan to launch a crypto index fund demonstrates its commitment to innovation and catering to investor demand. Diversifying product offerings can help attract a broader range of investors and support market growth.
In summary, the increase in Base L2 network’s TVL following Coinbase’s Q2 earnings beat reflects renewed positive sentiment and optimism about the future of crypto regulation and investment. Strategic partnerships, regulatory clarity, and product innovation are key factors driving this positive outlook.