The blockchain market intelligence firm, Nansen, has recently released a comprehensive report analyzing the behavior and investment patterns of the early whales who onboarded Coinbase’s layer 2 blockchain, Base. This article aims to delve deeper into the findings of Nansen’s report and shed light on the preferences and strategies adopted by these pioneering investors.
Ethereum and Layer 2 Networks
According to Nansen’s analysis, the early whales primarily allocated their funds to Ethereum and its layer 2 networks. As of August 7, the largest portion of their investments, totaling $19.6 million, was held in Ethereum itself, followed closely by Base at $17.6 million. Additional investments were observed in other layer 2 networks such as Arbitrum and Optimism. This allocation indicates a strong belief in the potential of Ethereum and its scalability solutions.
Tokens of Choice
Among the tokens held by these early whales, Ethereum (ETH) ranked as the most common investment at $11.6 million. Notably, there were also substantial investments in memecoins such as Bald, totaling $2.7 million (mainly due to the BALD deployer), UNIBOT with $284,000, and BITCOIN with $273,000. This diverse token allocation suggests a willingness to embrace different opportunities within the market.
Engagement with Decentralized Exchanges (DEXs)
Nansen’s report revealed that the early whales were actively interacting with popular decentralized exchanges, the most prominent ones being Uniswap and 1Inch. The majority of their activity was concentrated in DEXs, stablecoins, layer 2 networks, and common decentralized finance (DeFi) applications. This preference for trustworthy DeFi apps and the utilization of established protocols highlights the cautious approach taken by these early adopters.
Exploring the Crypto-Native Segment
Based on their analysis, Nansen concludes that many of the early depositors who bridged their assets to Base before its official launch were “crypto native degens.” This suggests that the crypto-native segment has been actively engaging with the Base platform even prior to its official unveiling. This level of early adoption and involvement showcases the enthusiasm and confidence within the crypto community towards new blockchain solutions.
Base Launch and User Adoption
On August 9, Base was officially launched, and within the first two days, it gained an impressive 136,000 daily active users. This rapid and substantial user adoption is a testament to the appeal and potential that Base holds within the market. It demonstrates the growing demand for more scalable and user-friendly blockchain solutions like Base.
Nansen’s report provides valuable insights into the behavior and investment strategies of the early adopters of Coinbase’s layer 2 blockchain, Base. The analysis highlights the dominant allocation to Ethereum and its layer 2 networks, the diverse token holdings, and the preference for established DeFi apps and DEXs. Furthermore, the active engagement of the crypto-native segment and the impressive user adoption of Base signify the positive reception and acceptance of innovative blockchain solutions. As the cryptocurrency ecosystem continues to evolve, it will be intriguing to witness how these early adopters shape the future of Base and its impact on the broader blockchain industry.