Decoding why BASE surged despite disconnection to Coinbase
After Coinbase made its Ethereum [ETH] layer-2 announcement, Base Protocol’s [BASE] volume jumped by 3600%. However, it was noteworthy to mention that BASE has no links with the “BuildonBase” project of the exchange. In fact, Coinbase had cleared the air that it was not issuing any token from the project.
How much are 1,10,100 BASEs worth today ?
However, some crypto traders seemed to get wind of the clarification late as transactions within the Base Protocol ecosystem climbed. According to Santiment, BASE’s volume, which has been at unimaginably low levels for a long while, suddenly jumped to 1.29 million.
It was a similar case with its price, which increased to $6.87 But, on realizing that the token was not connected to Coinbase, traders exited their positions. This made the earlier spike within the token, whose market cap is less than $1 million, look like a pump-and-dump scheme.
Source: Santiment
But the hike did not end at the price and volume alone. Santiment further revealed that Base Protocol’s network growth also rose to 198. The network growth serves as an illustration of the user adoption of a projection.
So, the initial spike implied that there were a lot of new addresses created on the Base Protocol network. However, data at press time showed that the metric had declined massively. This means that the project was no longer gaining traction like it did on 23 February.
The impact of the massive accumulation was also reflected in the BASE holders’ portfolios. This was because the Market Value to Realized Value (MVRV) ratio climbed from -70.68% to -16.10%. The MVRV ratio measures how much unrealized profits or losses holders of an asset have had.
However, the metric increase was only for a brief
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