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Why Coinbase and Crypto are appearing today
Cryptocurrencies rebounded strongly on Monday as investors returned to the market. Bitcoin has traded above $53,000 for the first time since November 2021, sending the entire market higher.
Even larger movements have taken place. Ethereum (CRYPTO: ETH) has jumped 8.3% since the market closed on Friday, CLOSE Protocol (CRYPTO: NEAR) was up 21.3% on Monday, and Coinbase (NASDAQ:COIN) jumped 16.9%. Bitcoin miners Digital marathon And Riot platforms were up 21.7% and 17%, respectively at the end of today’s session. This is the momentum that has been building for a while, but for some, it may be here to stay.
Ethereum gets an upgrade
The Ethereum blockchain will receive an upgrade called Dencun in mid-March, which is expected to increase throughput and reduce costs of the blockchain. This could make blockchain much more usable for utility purposes, which has always been the promise of cryptocurrency.
Grayscale, a digital currency asset management company that owns several crypto funds, touted the upgrade as a catalyst for Ethereum in the long term. They also believe it could be the next to be approved for an exchange-traded fund (ETF).
Near Protocol is also up sharply, but that’s largely because it’s tracking the bullish moves of the broader sector. There was no specific news; speculation pushed Near higher today.
Miners shine
It’s no surprise that the rise in the price of Bitcoin has led to a rise in Bitcoin mining stocks. These companies not only generate revenue from Bitcoin mining – so their revenue and gross margin will grow as Bitcoin does – but they also hold Bitcoin on their balance sheet. This gives them double leverage when the price of Bitcoin rises, which we are seeing today.
Coinbase rides the tide
Coinbase, the crypto exchange and infrastructure company, is riding the wave of crypto momentum. Trading is a significant part of Coinbase’s business, but it also indicates increased activity on the blockchain from developers and, potentially, financial institutions.
The advantage is that products such as wallets, Base blockchain, cloud tools, business applications, etc. are available. will work on Coinbase. This is where the company’s service products are going and why it could be a disruptive business in the long term.
The end of the crypto winter
It has become clear over the past six months that the cryptocurrency winter may be over. Trading is up, valuations are rising, and the industry is growing and investing more than before the last bull market. This will likely lead to more activity on the blockchain, even if the value generated is not evenly distributed.
The story continues
Blockchains that can provide real utility through smart contracts, fast transactions and low costs will add value and could be disruptive technologies. This is why Ethereum upgrades are so important as developers look for more use cases.
I think the best way to invest in crypto recovery is to use Coinbase, as it benefits regardless of which blockchain the activity is happening to. It could overtake all its crypto rivals in 2024.
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Travis Hoium holds positions in Coinbase Global and Ethereum. The Motley Fool holds positions and recommends Bitcoin, Coinbase Global, and Ethereum. The Mad Motley has a disclosure policy.
Why Coinbase and Crypto are appearing today was originally published by The Motley Fool