Coinbase has included the ZetaChain mainnet as the default network within its ecosystem. With the new integration, Coinbase Prime now facilitates institutional custody for ZETA.
In order to facilitate native ZETA staking and payouts, Coinbase has also joined in as a validator. ZetaChain, in the meantime, has fully supported Base, enabling smooth communication between Base, Bitcoin, Ethereum, and other networks.
Coinbase shares have previously closed at $210.48 a piece, being up over 7% as of the last closing price. In pre-market trading, the price is slightly down over 0.7% as per official data.
Coinbase Aims To Solve Interoperability
The main aim of the integration is to resolve interoperability. The issue arises from the fact that every blockchain is isolated and unable to interact with other blockchains. It is comparable to having several PCs without internet access.
One factor impeding the mass use of blockchain and cryptocurrency is this lack of compatibility. When a developer creates a dapp, for instance, they are essentially committing to a certain blockchain, and users will share that commitment. A user has numerous UX challenges when attempting to utilize a different Dapp on a different chain.
For this, the Zeta integration will help better the interoperability aong major chains.
What is ZETA?
ZetaChain is a worldwide L1 blockchain designed to bridge the gaps between various blockchain networks. It facilitates easier interoperability across Base, Ethereum, and Bitcoin blockchains. Coinbase takes advantage of ZetaChain’s full support for Base.
By doing this, the cryptocurrency exchange offers a simplified way for users and developers to communicate with various blockchains. They do not face the typical challenges associated with switching between networks in this regard.
Coinbase Shares To See Volatility
The integration news comes parallel to the market bracing for volatility in Coinbase shares. In a note released on Wednesday, Citi analysts issued a warning, citing the possibility of further volatility in Coinbase shares in the upcoming weeks due to the company’s Q3 2024 earnings and the possible influence of the US elections.
Citi reduced its price objective for Coinbase shares from $345 to $275, although it still has a Buy/High-Risk rating on the platform. The bank issued a warning that the cryptocurrency platform may face several difficulties.
The analysts note two important variables: “For results, the focus will be on spot volume share where Coinbase has experienced moderate slippage vs. competitors and/or perhaps a degree usage from the BTC and ETH ETF.”