February 7, 2024 5:17 PM
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newsletter@mail.coinbase.com
Why crypto is buzzing about Farcaster
Coinbase Bytes newsletter provides updates on the crypto market, focusing on the growth of decentralized social media, specifically Farcaster, and the impact of ETFs on Bitcoin prices.
A closer look at the rapidly growing decentralized social media community View in browser 2/8/24 Farcaster is a decentralized social media platform that has grown rapidly in the last two weeks. [Image via Farcaster] What’s up? It’s Coinbase Byte
February 7, 2024 5:17 PM
-
newsletter@mail.coinbase.com
Why crypto is buzzing about Farcaster
Coinbase Bytes newsletter provides updates on the crypto market, focusing on the growth of decentralized social media, specifically Farcaster, and the impact of ETFs on Bitcoin prices.
A closer look at the rapidly growing decentralized social media community View in browser 2/8/24 Farcaster is a decentralized social media platform that has grown rapidly in the last two weeks. [Image via Farcaster] What’s up? It’s Coinbase Byte
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</style></head><body style="margin:0; padding:0; background-color:#FFFFFF; font-family:Helvetica Neue,Helvetica,Arial,sans-serif; font-size:16px; color:#0A0B0D"><span style="color:transparent; visibility:hidden; display:none; opacity:0; height:0; width:0; font-size:0">A closer look at the rapidly growing decentralized social media community</span><img src="https://links.coinbase.com/e/eo?_t=3aca56371967418192255878e9689713&_m=76c0689959dc47739f5f3f51d05ac751&_e=vnVWBzqZt3jQ8i2LDqtrDdwLptCfyw2k_FLLfxf7pu1nGAUeoSvQmtbYcJbFooMUwrIoCAGTP62q_1lE0u6EAXYE1Wlkexxd7YOv7tQByErdQXMLret04zv76bPqotmedsm8XQDevSjMNnJuppo4n7JQdYNULwCMyRBlrf5CCM8%3D" width="1" height="1" style="border:0; width:1px; height:1px; border-width:0px!important; display:none!important; line-height:0!important"><div id="root" style="min-width:320px; background-color:#FFFFFF; width:100%"><div class="block-grid" style="min-width:320px; max-width:570px; word-break:break-word; margin:0px auto"><div style="padding:0px 10px 10px"><div style="text-align:right; margin-bottom:24px"><a href="#" target="_blank" rel="noopener noreferrer" style="color:rgb(91,97,110); text-decoration:none; line-height:1.5; font-size:12px">View in browser</a></div><div style="margin-bottom:20px"><table style="width:100%"><tbody><tr><td style="text-align:left; vertical-align:middle"><a href="#" title="Coinbase Bytes" target="_blank" rel="noopener noreferrer"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/cbytes-4x.png" height="36" style="display:block; height:36px"></a></td><td style="text-align:right"><p style="font-size:20px; color:rgb(10,11,1); margin:10px 0px 0px">2/8/24</p></td></tr></tbody></table></div><a href="#" target="_blank" rel="noopener noreferrer"><img src="https://images.ctfassets.net/q5ulk4bp65r7/1bCAEs75IaQY3G88OtkU9y/c88ff7264b91574f0ad7fea9fd699ddc/image1.png" width="100%" style="display:block; width:100%"></a><p style="margin:16px 0px 0px; line-height:1.5; word-break:break-word; font-size:12px; color:rgb(91,97,110)">Farcaster is a decentralized social media platform that has grown rapidly in the last two weeks. [Image via Farcaster]</p><p style="margin:48px 0px 16px; font-size:32px; line-height:1.26; word-break:break-word"><strong>What’s up? It’s Coinbase Bytes </strong></p><p style="margin:0px; line-height:1.6; word-break:break-word">There’s never a dull moment on the blockchain. Here’s what you need to know this week:</p><ul style="margin:10px 0px; padding-left:24px; line-height:1.6"><li style="margin:0px; padding:6px 0px"><strong>BTC continued to hover north of $42K. </strong>Meanwhile, stock and crypto markets are trying to gauge when the Fed may begin cutting interest rates.</li><li style="margin:0px; padding:6px 0px"><strong>A look at Farcaster, crypto’s buzziest community. </strong>The decentralized social media platform is growing like crazy.</li><li style="margin:0px; padding:6px 0px"><strong>This week in numbers. </strong>Bitcoin’s massive onchain transaction volume in January, the amount of users that joined crypto in 2023, and more stats to know.</li></ul><p style="margin:0px; padding:0px"></p><div class="desktop_hide" style="display:none; max-height:0; overflow:hidden"><table style="width:100%; table-layout:fixed; margin:0"><tbody><tr><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Bitcoin</strong></p><p style="margin:8px 0px">$44,382.72 </p><p style="margin:0; font-size:12px">+4.32% </p></div></td></tr></tbody></table></a></td><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Ethereum</strong></p><p style="margin:8px 0px">$2,425.57 </p><p style="margin:0; font-size:12px">+6.31% </p></div></td></tr></tbody></table></a></td></tr><tr><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Solana</strong></p><p style="margin:8px 0px">$101.19 </p><p style="margin:0; font-size:12px">+4.45% </p></div></td></tr></tbody></table></a></td><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>XRP</strong></p><p style="margin:8px 0px">$0.51 </p><p style="margin:0; font-size:12px">+2.20% </p></div></td></tr></tbody></table></a></td></tr><tr><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Cardano</strong></p><p style="margin:8px 0px">$0.50 </p><p style="margin:0; font-size:12px">+1.07% </p></div></td></tr></tbody></table></a></td><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Avalanche</strong></p><p style="margin:8px 0px">$35.32 </p><p style="margin:0; font-size:12px">+6.55% </p></div></td></tr></tbody></table></a></td></tr></tbody></table></div><div class="mobile_hide"><table style="width:100%; table-layout:fixed; margin:0"><tbody><tr><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Bitcoin</strong></p><p style="margin:8px 0px">$44,382.72 </p><p style="margin:0; font-size:12px">+4.32% </p></div></td></tr></tbody></table></a></td><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Ethereum</strong></p><p style="margin:8px 0px">$2,425.57 </p><p style="margin:0; font-size:12px">+6.31% </p></div></td></tr></tbody></table></a></td><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Solana</strong></p><p style="margin:8px 0px">$101.19 </p><p style="margin:0; font-size:12px">+4.45% </p></div></td></tr></tbody></table></a></td></tr><tr><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>XRP</strong></p><p style="margin:8px 0px">$0.51 </p><p style="margin:0; font-size:12px">+2.20% </p></div></td></tr></tbody></table></a></td><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Cardano</strong></p><p style="margin:8px 0px">$0.50 </p><p style="margin:0; font-size:12px">+1.07% </p></div></td></tr></tbody></table></a></td><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Avalanche</strong></p><p style="margin:8px 0px">$35.32 </p><p style="margin:0; font-size:12px">+6.55% </p></div></td></tr></tbody></table></a></td></tr></tbody></table></div><p style="margin:20px 0px 0px; line-height:1.5; word-break:break-word; color:rgb(91,97,110); font-size:12px">Price changes are for the past week, ending on Feb 8, 2024 at 12:00 AM UTC</p><div class="cta_button" style="margin:24px 0px 0px; padding:0px; width:50%"><a href="#" target="_blank" rel="noopener noreferrer" style="display:block; margin:0px; line-height:1.2; font-size:16px; text-decoration:none; color:rgb(255,255,255); background-color:rgb(0,82,255); border-radius:30px; text-align:center; padding:18px 0px"><strong>See the latest prices</strong></a></div><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>MARKET UPDATE </strong></p></td></tr></tbody></table><p style="margin:5px 0px 0px; font-size:32px; line-height:1.26; word-break:break-word"><strong>Low volatility returns as BTC hovers above $42,000 for second week</strong></p></div><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">For much of 2023, crypto prices ticked steadily upward as traders anticipated the arrival of spot BTC exchange-traded funds that would bring a wave of new capital into the space. When the ETFs finally arrived last month, BTC prices spiked and then dipped — with many traders seemingly taking a “buy the rumor, sell the news” approach. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">But after a brief down cycle, BTC prices bounced back by January 27, and have hovered above $42,000 since. What’s driving the current low-volatility market, and where might things be headed next? Here’s what you need to know. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>Fed chief signals interest-rate cuts might take a while.</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">One anticipated potential catalyst for crypto prices this year is for the U.S. Federal Reserve to finally <a href="#" target="_blank" rel="noopener noreferrer">cut interest rates</a>. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Seeking to tame inflation without sending the economy into a recession, the central bank steadily increased rates to two-decade highs. Continued positive economic data (like <a href="#" target="_blank" rel="noopener noreferrer">last week’s jobs report</a>) seems to suggest that the strategy is working — but it also makes it less likely that prices will cool any time soon. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Speaking to “60 Minutes” last week, Fed Chair Jerome Powell <a href="#" target="_blank" rel="noopener noreferrer">indicated that cuts are likely coming</a> in 2024, but probably not as soon as March, as many market watchers had hoped.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">“With the economy strong like that, we feel like we can approach the question of when to begin to reduce interest rates carefully,” he said. “Our confidence is rising. We just want some more confidence before we take that very important step of beginning to cut interest rates.”</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>More than $7 billion has flowed into spot BTC ETFs.</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><a href="#" target="_blank" rel="noopener noreferrer">CoinShares reports</a> that more than $700 million poured into the 11 funds that make up the new asset class last week — with a total of $7.7 billion in inflows since the ETFs launched on January 11. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Importantly, that number now significantly exceeds the $6 billion in outflows Grayscale’s GBTC ETF has seen in the same timeframe. Grayscale’s ETF remains a special case, given that it had $30 billion under management before it converted into an ETF, and a big chunk of the outflows were related to FTX’s ongoing liquidation.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">As a class, the ETFs are widely considered to be a big hit — they’ve had a “monster start,” as the <a href="#" target="_blank" rel="noopener noreferrer">Wall Street Journal</a> put it. Even though they didn’t begin trading until well into the month, the two biggest (from BlackRock and Fidelity) were among the Top Ten ETFs with the <a href="#" target="_blank" rel="noopener noreferrer">most inflows in January</a>. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>Current ETF inflows are likely just the beginning.</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Wealth managers — who control access to $48 <i>trillion</i> in assets — <a href="#" target="_blank" rel="noopener noreferrer">have yet to offer the ETFs</a> to clients in a significant way. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">“Advisor networks tend to require months of trading and due diligence before adding an ETF to their platform,” notes Barron’s. “Big traders also generally want to see assets and volumes reach a level at which they aren’t going to move prices themselves when they dive into any one fund.”</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Independent advisors who aren’t affiliated with a major firm are also likely taking some time watching and learning before they start offering the ETFs to clients in big numbers. According to the head of the Digital Assets Council of Financial Professionals, independent financial advisors could direct <a href="#" target="_blank" rel="noopener noreferrer">$150 billion</a> into the funds over the next two years. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>The bottom line…</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">As many <a href="#" target="_blank" rel="noopener noreferrer">analysts have noted</a>, a unique set of potential catalysts have lined up that could impact prices in 2024.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Interest rate cuts will likely arrive later this year; BTC’s <a href="#" target="_blank" rel="noopener noreferrer">next halving</a> is set for April (and historically halvings have been associated with rallies); and crypto ETFs are off to a strong start even though their target audience hasn’t even started trading them yet. But how will these developments affect the famously unpredictable crypto market in reality? Only time will tell.</p><div class="cta_button" style="margin:24px 0px 0px; padding:0px; width:50%"><a href="#" target="_blank" rel="noopener noreferrer" style="display:block; margin:0px; line-height:1.2; font-size:16px; text-decoration:none; color:rgb(255,255,255); background-color:rgb(0,82,255); border-radius:30px; text-align:center; padding:18px 0px"><strong>Learn about ETFs</strong></a></div><a href="#" target="_blank" rel="noopener noreferrer"><div class="desktop_hide" style="display:none; max-height:0px; overflow:hidden"><img src="https://images.ctfassets.net/q5ulk4bp65r7/11ethN8SqaxfTpSQp5dFNK/2a692d99adc4eceabaa8a5da01590f6e/650x488px_mobile__1_.png" width="100%" style="display:block; width:100%; margin:64px 0px"></div><div class="mobile_hide"><img src="https://images.ctfassets.net/q5ulk4bp65r7/2EIy1P2xeUhtobZGk8Vi8V/f8427ab27cd5eb64dfcd50efe733d669/1060x408px_desktop__1_.png" width="100%" style="display:block; width:100%; margin:64px 0px"></div></a><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>SOCIAL STUDIES </strong></p></td></tr></tbody></table><p style="margin:5px 0px 0px; font-size:32px; line-height:1.26; word-break:break-word"><strong>Crypto is buzzing about Farcaster. Here’s what you need to know.</strong></p></div><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Social media drove the web2 revolution, but can it do the same for web3? So far this year, the buzziest name in web3 is a social media protocol called <a href="#" target="_blank" rel="noopener noreferrer">Farcaster</a>. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">In less than two weeks, the number of daily users of the platform — which was founded in 2020 by a pair of former Coinbase employees — <a href="#" target="_blank" rel="noopener noreferrer">jumped more than 900%</a> as the protocol showed its potential to reshape the relationship people have with their own data. Let’s dive in.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>What is decentralized social media, anyway?</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Decentralized social protocols like Farcaster and Friend.tech aim to bring <a href="#" target="_blank" rel="noopener noreferrer">the benefits of web3</a> to social media, while also eliminating some of the “<a href="#" target="_blank" rel="noopener noreferrer">walled gardens</a>” and pitfalls that come with centralized giants like Facebook and X. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">In practice, that means giving users greater control over their data, the ability to build custom experiences, and a deeper level of censorship resistance. The recent success of Farcaster, which saw its seven-day trailing average of daily active users <a href="#" target="_blank" rel="noopener noreferrer">grow from 2,200 to more than 20,000</a> in about two weeks, highlights a growing interest in social media alternatives.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>How does Farcaster work?</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">“Farcaster is a social media protocol built on Optimism, the Ethereum scaling network,” writes <a href="#" target="_blank" rel="noopener noreferrer">Decrypt</a>. “On top of the public and decentralized Farcaster ecosystem, users can create (and have created) a slew of integrated apps that perform various social media functions.” </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">As a result, Farcaster already offers access to a <a href="#" target="_blank" rel="noopener noreferrer">large collection of applications</a>, including Warpcast (which is similar to X and currently accounts for around half of all sign ups), Farcord (similar to Discord), and Tiles (similar to the image-sharing app VSCO).</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">You can switch from one app to another with a single login and your social connections migrate with you. As part of the protocol’s efforts to discourage spambots, new accounts require either a phone number or cost $5. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>Why did Farcaster suddenly enter the crypto conversation?</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Activity on Farcaster exploded after a late-January upgrade introduced a new feature called “Frames,” which allows users to easily build interactive experiences within a post.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Frames make Farcaster apps hugely flexible — allowing users to mint NFTs, play video games, sign up for subscription services, and more – all without ever leaving their feed. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Paragraph, a decentralized newsletter platform, <a href="#" target="_blank" rel="noopener noreferrer">built a Frame</a> that allows followers to subscribe to newsletters and receive them directly in their wallets. Other popular Frames offer features that range from a playable version of the 1993 first-person shooter game “Doom” to ordering Girl Scout cookies. Right now, the <a href="#" target="_blank" rel="noopener noreferrer">majority</a> of developer activity for Frames is happening on Base, the Coinbase-incubated Ethereum layer 2 blockchain.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>The bottom line… </strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Farcaster’s rapidly-growing user base qualifies it as a hit in the still burgeoning space of decentralized social media, but it’s not exactly a household name. Instead, it offers a glimpse into what social media could look like if it weren’t controlled by a handful of corporations.</p><div class="cta_button" style="margin:24px 0px 0px; padding:0px; width:60%"><a href="#" target="_blank" rel="noopener noreferrer" style="display:block; margin:0px; line-height:1.2; font-size:16px; text-decoration:none; color:rgb(255,255,255); background-color:rgb(0,82,255); border-radius:30px; text-align:center; padding:18px 0px"><strong>Read more on decentralized social</strong></a></div><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>NUMBERS TO KNOW </strong></p></td></tr></tbody></table></div><h1><strong>$1.21 trillion</strong></h1><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Bitcoin’s onchain transaction volume for January, the <a href="#" target="_blank" rel="noopener noreferrer">highest monthly total</a> since September 2022, according to the Block. January marked the fourth straight month of increases, with more than triple the volume in September, when the uptrend began. </p><h1><strong>$1 billion</strong></h1><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Amount of revenue that Meta’s Reality Labs <a href="#" target="_blank" rel="noopener noreferrer">reported</a> in its most recent earnings announcement, up from $727 million for the same period last year. At the same time, the metaverse-focused part of the business saw $4.6 billion in losses, which the company anticipated to grow due to “ongoing product development efforts in augmented reality/virtual reality.”</p><h1><strong>62.1 million</strong></h1><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Number of new crypto users in 2023, according to a recent <a href="#" target="_blank" rel="noopener noreferrer">report</a> from onchain analytics platform Flipside Crypto. As the Defiant <a href="#" target="_blank" rel="noopener noreferrer">notes</a>, Ethereum attracted the most new users at 15.4 million, Polygon followed closely with 15.2 million, and Bitcoin acquired 10.7 million.</p><h1><strong>60,000</strong></h1><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Number of <a href="#" target="_blank" rel="noopener noreferrer">preorders</a> for the “Solana Mobile Chapter 2,” the successor to Solana’s crypto-enabled Saga phone (which sold out last December as the price of a Solana token included on the phone called BONK soared at the end of 2023). The Chapter 2, which includes features like self-custody, and easy access to <a href="#" target="_blank" rel="noopener noreferrer">dapps</a>, is expected to launch in 2025 with a $450 price tag.</p><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>TOKEN TRIVIA </strong></p></td></tr></tbody></table><p style="margin:5px 0px 0px; font-size:32px; line-height:1.26; word-break:break-word"><strong>Which of the following is not a stablecoin?</strong></p></div><div style="margin-top:16px"><table style="line-height:1.6; word-break:break-word"><tbody><tr><td style="padding-right:12px"><strong>A</strong></td><td>LINK</td></tr><tr><td style="padding-right:12px; padding-top:12px"><strong>B</strong></td><td style="padding-top:12px">USDC</td></tr><tr><td style="padding-right:12px; padding-top:12px"><strong>C</strong></td><td style="padding-top:12px">DAI</td></tr><tr><td style="padding-right:12px; padding-top:12px"><strong>D</strong></td><td style="padding-top:12px">USDT</td></tr></tbody></table></div><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Find the answer at the end of the email.</p><div class="cta_button" style="margin:24px 0px 0px; padding:0px; width:50%"><a href="#" target="_blank" rel="noopener noreferrer" style="display:block; margin:0px; line-height:1.2; font-size:16px; text-decoration:none; color:rgb(255,255,255); background-color:rgb(0,82,255); border-radius:30px; text-align:center; padding:18px 0px"><strong>Learn about stablecoins </strong></a></div><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>NOW TRADING ON COINBASE </strong></p></td></tr></tbody></table></div><a href="#" target="_blank" rel="noopener noreferrer" style="color:rgb(10,11,13); text-decoration:none"><table style="margin:16px 0px 0px; width:100%"><tbody><tr><td style="font-size:32px; line-height:1.26; word-break:break-word; vertical-align:middle; white-space:nowrap"><strong>ONDO</strong></td><td style="vertical-align:middle; padding-left:12px"><img src="https://asset-metadata-service-production.s3.amazonaws.com/asset_icons/326206bd81c60fcf6f2c51af86d47493b00e345a42e9ca01217550c1b89cf430.png" width="26" height="26" style="display:block; width:26px; height:26px; vertical-align:middle"></td><td style="vertical-align:middle; text-align:right; width:100%"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Newsletter%20Assets/newlistings_light.png" width="21" height="18" style="width:21px; height:18px; vertical-align:middle"></td></tr></tbody></table><p style="margin:0px; line-height:1.6">Ondo Finance was created to bring institutional-grade financial products onchain, including tokens backed by U.S. </p></a><a href="#" target="_blank" rel="noopener noreferrer" style="color:rgb(10,11,13); text-decoration:none"><table style="margin:16px 0px 0px; width:100%"><tbody><tr><td style="font-size:32px; line-height:1.26; word-break:break-word; vertical-align:middle; white-space:nowrap"><strong>ZETA</strong></td><td style="vertical-align:middle; padding-left:12px"><img src="https://asset-metadata-service-production.s3.amazonaws.com/asset_icons/ef9e387c9bf4354c6163feeb01183f15f362d500e6cb7b0d9a2ed3346e0256a8.png" width="26" height="26" style="display:block; width:26px; height:26px; vertical-align:middle"></td><td style="vertical-align:middle; text-align:right; width:100%"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Newsletter%20Assets/newlistings_light.png" width="21" height="18" style="width:21px; height:18px; vertical-align:middle"></td></tr></tbody></table><p style="margin:0px; line-height:1.6">ZetaChain is a blockchain built on the Cosmos SDK focused on enabling interoperability among all blockchains. </p></a><a href="#" target="_blank" rel="noopener noreferrer" style="color:rgb(10,11,13); text-decoration:none"><table style="margin:16px 0px 0px; width:100%"><tbody><tr><td style="font-size:32px; line-height:1.26; word-break:break-word; vertical-align:middle; white-space:nowrap"><strong>HONEY</strong></td><td style="vertical-align:middle; padding-left:12px"><img src="https://asset-metadata-service-production.s3.amazonaws.com/asset_icons/f2effb1df58c6c15bf2a3b64258f29ed4e76e018da846bd8472f30ee5c275711.png" width="26" height="26" style="display:block; width:26px; height:26px; vertical-align:middle"></td><td style="vertical-align:middle; text-align:right; width:100%"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Newsletter%20Assets/newlistings_light.png" width="21" height="18" style="width:21px; height:18px; vertical-align:middle"></td></tr></tbody></table><p style="margin:0px; line-height:1.6">Hivemapper is a decentralized mapping network that aggregates road-level imagery and data. </p></a><a href="#" target="_blank" rel="noopener noreferrer" style="color:rgb(10,11,13); text-decoration:none"><table style="margin:16px 0px 0px; width:100%"><tbody><tr><td style="font-size:32px; line-height:1.26; word-break:break-word; vertical-align:middle; white-space:nowrap"><strong>VELO</strong></td><td style="vertical-align:middle; padding-left:12px"><img src="https://asset-metadata-service-production.s3.amazonaws.com/asset_icons/f61c887898ac0902737bba0f4d5d460bd1b64247c34e6bf7b506052d39b1adf9.png" width="26" height="26" style="display:block; width:26px; height:26px; vertical-align:middle"></td><td style="vertical-align:middle; text-align:right; width:100%"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Newsletter%20Assets/newlistings_light.png" width="21" height="18" style="width:21px; height:18px; vertical-align:middle"></td></tr></tbody></table><p style="margin:0px; line-height:1.6">Velodrome Finance is an automated market maker on Optimism. </p></a><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><p style="margin:0px; line-height:1.6; word-break:break-word"><strong>Trivia answer</strong></p><table style="margin:12px 0px 0px; line-height:1.6; word-break:break-word"><tbody><tr><td style="padding-right:12px"><strong>A</strong></td><td>LINK</td></tr></tbody></table><table style="margin:48px 0px 0px"><tbody><tr><td style="text-align:left"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Rebrand%20Assets/coinbase_footer_wordmark.png" alt="Coinbase" height="26" style="display:block; height:26px; margin-bottom:24px"></td></tr><tr><td><a href="#" title="coinbase ios app" target="_blank" rel="noopener noreferrer"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Icons/app_apple.png" alt="Download on iOS App store" height="46" style="display:block; height:46px; margin-right:8px"></a></td><td><a href="#" title="coinbase android app" target="_blank" rel="noopener noreferrer"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Icons/app_google.png" alt="Download on Google Play" height="46" style="display:block; height:46px"></a></td></tr></tbody></table><div style="margin-top:24px"><p style="font-size:12px; line-height:1.8; word-break:break-word; color:rgb(91,97,110)">Disclaimer: This material is the property of Coinbase, Inc., its parent and affiliates ("Coinbase"). The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Coinbase or its employees and summarizes information and articles with respect to cryptocurrencies or related topics that the author believes may be of interest. This material is for informational purposes only, and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations or (iii) an official statement of Coinbase. No representation or warranty is made, expressed or implied, with respect to the accuracy or completeness of the information or to the future performance of any digital asset, financial instrument or other market or economic measure. The information is believed to be current as of the date indicated on the materials. Recipients should consult their advisors before making any investment decision. Coinbase may have financial interests in, or relationships with, some of the entities and/or publications discussed or otherwise referenced in the materials. Certain links that may be provided in the materials are provided for convenience and do not imply Coinbase's endorsement, or approval of any third-party websites or their content. <br><br>Coinbase is licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. <br><br>© Coinbase 2024 | Coinbase Inc. <br>248 3rd St #434 <br>Oakland | CA 94607 | US <br><a href="#">www.coinbase.com</a> <br><a href="#">Get in touch</a> <br><br><br><a href="#" style="text-decoration:none">Unsubscribe</a> from future editions of Coinbase Bytes.</p></div></div></div></div><img alt="" src="http://comm.coinbase.com/CI0/0100018d8613e0b4-5870249a-dffc-4ac7-b32e-3e520f869a6e-000000/puVofO8oh24C5qSZnCOk1KPgd9TmXsOEw2OHmKYuuwM=339" style="display:none; width:1px; height:1px"> </body></html>
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