Coinbase, the second-largest cryptocurrency exchange globally, is emerging as a dominant force in the Decentralized Finance (DeFi) market, showcasing remarkable growth and outpacing its competitors.
As of the latest update, Coinbase manages approximately $114 billion in assets, slightly trailing the total value locked (TVL) in the DeFi market, which stands at approximately $117 billion. However, a closer examination of quarterly performance reveals Coinbase’s substantial lead.
According to insights from Messari’s Crypto Theses 2024, Coinbase boasts an impressive 80% more Total Value Locked (TVL) in custody compared to the cumulative TVL of DeFi across all blockchains.
Coinbase’s significant expansion in 2023 is attributed to the successful launch of its layer-2 chain, Base, currently ranking as the fourth-largest L2 chain globally, with a TVL exceeding $637 million.
COIN Price Surges to New Heights
Enjoying a bullish year marked by regulatory stability and an absence of security breaches, Coinbase’s share value has experienced substantial growth. In the past month alone, the COIN price surged by 47.45%, concluding at $186 during the market close on December 28.
This exceptional performance represents a year-to-date growth of 460%, witnessing a remarkable ascent from $33.67 to a new 2023 high achieved on Thursday.
While the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators currently reflect bullish trends, analysts caution that the bullish momentum might taper off in early 2024. Market observers anticipate a cooling-off period before the projected rally, particularly in anticipation of the spot Bitcoin ETF approval expected on January 10.
