TL; DR
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Coinbase just launched a Web3 wallet aimed at institutional investors so they can explore decentralized finance apps, decentralized social apps, and buy NFTs.
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This new wallet makes something possible terribly Entities with deep pockets to start buying/exchanging/locking various forms of crypto (most likely Ethereum)
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The mass purchase/custody of a scarce commodity like ETH can lead to upward price movements (demand + scarcity = value).
Full story
Let’s talk about institutional blockchain infrastructure.
Wait, no, don’t leave!
If you’re a crypto investor, this kind of thing often translates into money in your pocket.
Coinbase just launched a Web3 wallet aimed at institutional investors so they can explore decentralized finance apps, decentralized social apps, and buy NFTs.
“Okay…so people like JP Morgan could start a decentralized social account, buy some NFTs and stake some tokens? How does that translate to ‘money in my pocket?’”
Fair question!
All these ‘explorations’ require blockchain transactions.
That means this new wallet allows some terribly Entities with deep pockets to start buying/exchanging/locking up various forms of crypto.
The most likely is Ethereum in one of its many forms.
The mass purchase/custody of a scarce commodity like ETH can lead to upward price movements.
(Demand + scarcity = value).
Add to that the fact that every time Ethereum is traded, some of the fee is burned/destroyed, while some goes to the people processing the transactions – taking even more ETH off the market, while some of that institutional wealth is spread among those who carry out the transactions. the network.
It’s a damn economic construct!
Whether institutional investors will care enough about (what they most likely see as) niche assets/instruments within the space?
No idea! But if/when crypto markets start to rise again, institutions will undoubtedly want to capitalize in some way.
Coinbase’s institutional Web3 wallet provides another entry point.
