Coinbase, the world’s largest cryptocurrency exchange, is unveiling its cryptocurrency investment holdings even though the global economy is in flux. The major United States-based cryptocurrency exchange platform reveals a detailed analysis of this year’s first quarter cryptocurrency portfolio in another article and views on how it aims to maneuver an unpredictable macroclimate in the future.
Several cryptocurrency investors are nervous in the face of a shaky macro image. The strategy will remain mostly unchanged. It’s worth noting that some of the biggest ventures were financed amid the 2018/2019 bad market. It’s worth noting that the initial investments in businesses, including Compound and Polygon, are part of those that spring to mind.
As a result, we’ll keep investing in excellent founders and ideas that move the industry ahead irrespective of larger market circumstances. Coinbase claims that they made investments in cross-chain and Web 3.0 systems in the first quarter since various networks’ value increased, creating a desire for capital movement across multiple blockchains.
Blooming Cross-chain and Web3 Infrastructure
ETH and BTC were the dominant cryptocurrencies in the initial periods of the cryptocurrency industry. With the addition of new layer 1s in the past years, communities beyond the BTC/ETH have expanded, with over ten chains already containing over $1 Billion in value.
The expanding value of different networks has necessitated a greater requirement for value to migrate from one chain to the next. Thus, cross-chain technology is being developed to support transactions between blockchain networks.
With the multi-chain future certain, new experimental layer 1s are constantly being developed. The funding in Aptos (general-purpose L1), Subspace (PoA agreement), and Celestia (module blockchains) indicate that the industry isn’t finished developing at the bottom layer. It also raises whether today’s alpha layer 1s will be displaced in the future. We’ll have to wait and see.
Decentralized Autonomous Organizations and Web3 communities will benefit from additional tools at the higher layers of the stack. To further serve these ecosystems in the future, companies such as Diagonal and Zebec have developed solutions in payment, social media, and e-commerce.
In other parts of Finland, the Polkadot community was extremely active in the first quarter. With the long-awaited debut of Polkadot parachains set for last year’s ending, the Polkadot movement is gaining traction.
Polkadot can be considered a channel on which layer 1 applications can be launched. These layer 1s, referred to as parachains, can communicate with each other. Polkadot may now support customer apps thanks to the implementation of parachains. We’ve funded four of the five live parachains, including the Satori, Composable Finance, and Moonwell.