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Current cycle less speculative, users go beyond Bitcoin and Ethereum

Source: Instagram, Coinbase

The adoption curve of crypto starts with Bitcoin (BTC) before moving to Ethereum (ETH), Decentralized Funding (DeFi) and other crypto assets, the US-based crypto exchange Coinbase said in a conference call this week. They also found that the current market cycle “feels less speculative” than past cycles, with real use cases coming into focus.

Regarding a typical user’s journey into cryptocurrency, Coinbase’s chief financial officer (CFO) Alesia Haas said that people generally start out with Bitcoin before going on to bid on buying and owning BTC, ETH, or others on the exchange Go beyond cryptocurrencies.

“And what we see there is an adoption curve that starts with Bitcoin, then normally moves to Ethereum, but then quickly reaches out to other crypto assets. And we see investors looking for an allocation in DeFi and finding ways to bet on the growing innovation of crypto in general, ”Haas said.

Meanwhile, Coinbase’s comments on activity on its platform in the last quarter were similar to the exchange’s comments in May last year, when the exchange said the vast majority of its customers are trading altcoins and other digital assets after purchasing Bitcoin for the first time .

“Among the customers with at least five purchases, 60% start with Bitcoin, but only 24% stick exclusively to BTC,” said the exchange at the time.

However, at the time, Coinbase also admitted that the “increasing drive” towards non-BTC assets was “partly due” to its own business strategy which included the “continuous addition” of new altcoins and other tokens.

However, on that most recent call, the CFO also noted that the market feels less speculative this time around and that it appears to be “fueled by the utility and wider adoption of crypto”.

Coinbase CEO Brian Armstrong shared a similar opinion, emphasizing that today’s crypto market has matured in different ways compared to previous cycles.

“I think if you go back three, four, five years, a lot of those cycles in cryptocurrency were more speculative,” said Armstrong, adding that back then, people mostly bought crypto because they thought it would go up in price.

“Back then, people always asked me […] When will the use cases be here, “said Armstrong, adding,” Fortunately, nobody is asking me that question anymore. ”

He cited non-fungible tokens (NFTs), staking, borrowing, lending and the Coinbase Card as examples of some of these new use cases.

When asked how interest in crypto has evolved on both the retail and institutional side, Armstrong reiterated that the entire market in the past was “speculative” and that it is now more widely used. “We always try to think a little longer in the long term. But for me the most important thing is how we get more people to actually use crypto for more things, ”he said.

Instagram-style NFT marketplace

Meanwhile, Coinbase has also revealed some of their future plans in the fast-growing NFT space, stating that they are making progress on their plans to launch an NFT marketplace, drawing inspiration from social media in the process.

“[W]We’d like the Coinbase NFT a little more, you know Instagram unlike an auction like Ebay or something like that, ”said Armstrong.

He went on to say that the company wants to create a social experience where users can follow their “favorite artists or creators” while also having the opportunity to showcase purchased NFTs on their own social profile pages.

“Hopefully, we’ll also be able to use NFTs more easily,” added Armstrong.

“And hopefully you’ll get something out of here in the next few quarters,” said the CEO.

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Learn more:
– Altcoins Eclipse combined Bitcoin and Ethereum transaction volumes on Coinbase
– 1.5% of Coinbase users join the NFT waiting list in one day

– Altcoins For A Bumper 2022 As The Number Of Crypto Traders Doubles – Report
Bitcoin becomes a political tool as US mayors compete for BTC salaries

– Exchange will reimburse at least 6,000 Coinbase customers robbed this spring
– Coinbase’s Junk Bonds are successful and “endorsed” by the institutions

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