Coinbase’s Ethereum layer-2 solution, Base, encountered its first major disruption since its debut on August 9. For approximately 45 minutes on September 5, the Base chain ceased the production of new blocks. Developers pinpointed this issue at 9:36 pm UTC. In response, Coinbase stated, “We identified a delay in block production due to part of our internal infrastructure requiring a refresh. We’ve implemented a fix and are seeing widespread recovery.” Base has assured its users that they are actively monitoring the chain to avoid similar issues in the future.
Matt Willemsen, the head researcher at Collective Shift, highlighted the risks associated with Ethereum’s layer-2 solutions. He pointed out their recent entry into the market and stressed that they haven’t undergone the same intensive testing as Ethereum’s mainnet. As a result, they might face unforeseen challenges.
In a different development, there’s a rising optimism surrounding Bitcoin spot ETFs. According to Lunde and Helseth, the adverse effects of a potential spot ETF rejection would be minimal, with Bitcoin prices likely to remain stable. They mentioned the increasing chances of spot ETF approvals, stating that several analysts from Bloomberg are forecasting a 75% probability of an approval this year. This suggests that the current market sentiment regarding ETFs might be misguided.
Further supporting their positive stance, they cited the recent 2% uptick in the Nasdaq-100 index, commonly used as a broader market risk appetite gauge.
On the Ethereum front, despite its current price decline to $1,631, Lunde and Helseth are optimistic. They believe ETH has the potential to surpass Bitcoin in performance over the coming two months, mainly due to the momentum leading up to a futures-based ETF listing. They drew parallels to Bitcoin, which experienced a 60% surge ahead of the launch of its first futures-based ETF in October 2021.
A decision on the futures-based Ether ETF is expected in mid-October, and insiders believe it’s likely to receive a nod from the SEC.
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