Base Native Token Exploration is making waves as Coinbase’s Ethereum Layer 2 network, Base, considers launching its own native token. The announcement, made by Jesse Pollak at BaseCamp, marks a shift from the network’s previous stance of relying solely on ETH for gas fees. This strategic exploration aims to enhance the network by accelerating decentralization and expanding opportunities for developers within its ecosystem.
While Coinbase CEO Brian Armstrong confirmed the initiative, he emphasized that there are no definitive plans yet. The introduction of a Base native token could potentially position the network alongside other Layer 2 blockchains in Optimism’s Superchain ecosystem. Recent milestones for Base include achieving sub-second, sub-cent transactions and advancing to Stage 1 decentralization with permissionless fault proofs.
Polkadot Supply Cap: A New Era
In a significant move, Polkadot’s DAO has voted to cap the DOT supply at 2.1 billion, marking the end of its previous unlimited issuance model. This decision was supported by 81% of voters in referendum 1710. The new framework introduces a two-year token inflation period, replacing the prior schedule of minting 120 million DOT annually.
This change aims to stabilize the token’s supply, with projections indicating it will reach approximately 1.91 billion by 2040 under the new model. Despite the positive shift, DOT’s price experienced a 5% drop to $4.13 following the vote, amid a broader market downturn.
Ethereum’s Stablecoin Dominance
Ethereum’s stablecoin supply has reached a record high of $166 billion, reinforcing its role as DeFi’s settlement layer. USDT leads with $87.8 billion, followed by USDC at $48 billion. This growth signals increasing institutional liquidity and trust in Ethereum’s infrastructure, capable of absorbing market volatility.
USDT’s total market cap surpassed $170 billion, further cementing its dominance across blockchain networks.
Native Markets and USDH Stablecoin
Hyperliquid’s community has chosen Native Markets to issue the USDH stablecoin, beating out competitors like Paxos and BitGo. The rollout will begin with capped testing before expanding with a USDH/USDC trading pair. Fully backed by cash and U.S. Treasuries, USDH’s reserves will be managed by BlackRock and Superstate, posing a potential challenge to Circle’s USDC dominance.
Bitcoin Whale Activity Resumes
A notable Bitcoin whale, after a brief hiatus, has resumed selling, depositing 1,176 BTC worth $136.2 million to Hyperliquid. This follows the whale’s significant BTC to ETH conversion, impacting the ETH/BTC trading ratio.
Overall, the crypto market remains dynamic, with key developments in Base’s token exploration and Polkadot’s supply cap setting the stage for future innovations.
