Coinbase Sold 12,652 ETH, According To Standard Chartered Analysis
Standard Chartered‘s Geoffrey Kendrick on Thursday warned that activity on Coinbase‘s (NASDAQ:COIN) Base network is influencing Ethereum (CRYPTO: ETH) price dynamics through indirect selling pressure.
What Happened: Kendrick explained that while higher activity on Base boosts ETH demand initially—due to transaction fees being paid in ETH—the profits generated by Base are ultimately converted to U.S. dollars, weighing on ETH’s price.
According to Kendrick, Base, which has become the dominant Layer-2 on Ethereum, funnels approximately 80% of its revenue back to Coinbase.
The exchange, in turn, does not hold Base’s ETH profits for long.
“Coinbase is not in the business of HODLing Base’s ETH profits,” Kendrick stated, highlighting data that shows the company proactively selling ETH in the …
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