Analysts at Multinational Bank Standard Chartered believe Crypto Exchange Coinbase will “actively sell” 12,652. Ethereum Throughout the fourth quarter of 2024 (approximately $37 million). They explained that Coinbase’s Layer 2 network base drives demand for Ethereum, but its profits are hurting the underlying blockchain price action.
Standard Chartered reduced Ethereum’s 2025 price target from $10,000 to $4,000 earlier this week. At the time, Geoff Kendrick, global head of digital asset research at the bank, claimed that Layer 2 Network Base had removed $50 billion from ETH’s market capitalization.
“In my view, increasing activity at the base means increasing demand for ETH in the first instance,” Kendrick shared Decryption. “However, base profits (80% of all basic revenues are around 80%) on sale (ETH-USD sales) are sold to effectively send back profits to Coinbase.”
To support his point, analysts point to Coinbase’s quarterly Ethereum holdings for investments and operations that Kendrick subtracted from basic profits.
“This tells us that we actively sold 12,652 ETH in the fourth quarter of 2024,” he explained. “Over the three quarters, NetProactive sales were 1,558 ETH. So, although there have been only three-quarters of the relevant postdencon data so far, we can conclude that Coinbase is not a business of Hodling Base’s ETH profits.”
With the average price for the fourth quarter 2024 and using quarter openings and closings, this is about $37.68 million sold by Coinbase.
The Decun upgrade for Ethereum was released last March, significantly reducing gas prices on the Layer 2 network. Since then, analysts have indicated that Coinbase intends to sell it as part of the “normal risk-adjusted decision process.”
Coinbase didn’t respond immediately DecryptionRequest a comment.
In a standard charter analyst note from the beginning of the week, he argued that conducting transactions over a Layer 2 network would have a negative impact on the underlying blockchain, as Ethereum receives generally low fees. This then reduces the amount of gas fees collected from Ethereum blockchain’s “GDP” and transactions.
The base created by Coinbase is a Layer-2 network built on top of Ethereum, aimed at extending the capabilities of the underlying blockchain, crossing the popular centralized exchange bridge.
Standard Chartered analysts believe that looking at Coinbase’s Ethereum Holdings over the last three quarters, they have made more clarity about their corporate goals.
“The fact that they bought in the third quarter (if the average price is low) and the net sold in the fourth quarter (higher average price) teaches us that Coinbase will act as the maximum value of risk-adjusting profit does,” Kendrick added.
Standard Chartered’s Ethereum price target has been reduced, but with each Coingecko data, cryptocurrency is up 5.6%, or 4.6% in a week. Bitcoin At the same time, they are traded almost flat.
As a result, over 70% of users in the decentralized forecast market have been sent out countless times. DecryptionParent company Dastan – We believe the relative price of Ethereum against Bitcoin will exceed $0.023 by the end of the weekend.
