A transformative shift is occurring in the digital asset sector as leading fintech companies and cryptocurrency exchanges are increasingly expected to develop their own blockchains within the next five years. This trend is already evident with the launch of Coinbase’s Layer-2 network, Base, in 2023, which has quickly become the largest L2 by total value locked. This network, built using Optimism’s OP Stack, allows users to move assets like Bitcoin to the Base network and use them as collateral to borrow stablecoins, turning dormant assets into revenue-generating tools. This model is gaining traction among competitors such as Kraken, Bybit, Bitget, and OKX, with fintech platforms like Robinhood also considering similar integrations.
The expansion of custom blockchains is driven by Layer-2 scaling solutions like optimistic rollups, which enhance transaction speed and reduce costs by processing transactions off-chain before securing them on the Ethereum mainnet. This technology supports a vision of a “Superchain,” where L2s interoperate seamlessly, enhancing user experience and providing a robust framework for firms integrating into the on-chain economy.
Ethereum itself is evolving to support this growth, with proposals like EIP-7782 aiming to halve block times and initiatives from Matter Labs promising faster and cheaper transactions. These advancements are poised to bolster both Layer-1 and Layer-2 infrastructures, making them capable of handling higher transaction volumes and more complex financial applications.
In traditional markets, companies like MicroStrategy and Coinbase are seen as barometers for crypto sentiment. MicroStrategy’s stable volatility suggests potential for Bitcoin price movements, while Coinbase’s stock has surged following positive analyst ratings, signaling strong institutional support. These dynamics, alongside the rising ETH/BTC ratio and the performance of assets like SOL and AVAX, highlight a vibrant market environment. Ripple’s XRP Ledger is also undergoing significant upgrades, potentially attracting new interest. Investors are advised to monitor these developments, particularly the ETH/BTC ratio and the performance of key L2 and high-throughput L1 tokens.
