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The crypto users' interaction with digital assets is set to change as a new AI-powered crypto wallet, Armor Wallet which utilizes a ChatGPT-style interface enters the market. This next-gen crypto platform aims to simplify crypto trading for both experienced users and novices. This crypto wallet fulfils user requests using AI agents based on the natural language given by the investors. This eliminates the need for understanding technical jargon and navigating complex interfaces required for crypto trading, ultimately making way for enhanced accessibility and user experience in the crypto ecosystem. Users can simply type instructions like "Buy $500 worth of Bitcoin" and AI-driven Armor Wallet will place the order at the spot price after it finds the best price. The AI agents will execute the trade based on the crypto users’ queries which means it can do complex tasks like conditional buy/sell orders and setting up dollar-cost averaging strategies depending on market conditions. Earlier in 2023, Coinbase sought to enhance user experience with an AI chatbot called Coinbase One which provided personalized market insights to its premium customers. Later that year, crypto exchange Kraken launched an AI chatbot to help users navigate through the platforms with common queries. These developments indicate a growing trend of AI integration in the crypto industry, with Armor Wallet potentially pushing the boundaries further by focusing on trade execution and portfolio management. One of the key features touted by Armor Wallet is its ability to analyze social media trends, particularly on X (formerly Twitter), to guide new and popular tokens. This feature aligns with the increasing importance of social sentiment in crypto markets. However, users should approach such features with caution, as social media-driven investment decisions can be risky and potentially manipulated. This crypto wallet has a firm grip on crypto investing vocabulary and techniques along with a thorough understanding of web3 culture on which its AI is trained. Hence, the Armor Wallet AI has the advantage of accurately analysing current narratives and trends which is not only critical for crypto investments but also essential for anticipating future trends.

Coinbase has finally bridged a significant technological gap. The cryptocurrency exchange now allows its users to send Bitcoin to Taproot addresses. This development comes after years of delay. On Tuesday, Coinbase announced the update. It enables millions of users to utilize Taproot's privacy and cost-saving features. The company stated this move is "creating access to more onchain destinations." The integration addresses long-standing user frustrations. Since Taproot's launch in November 2021, Coinbase users were unable to fully leverage the upgrade. Many users reported difficulties before this update, because sending Bitcoin to Taproot addresses often resulted in delays and failed transactions. Coinbase's latest move aligns with a shifting political landscape. Digital assets are gaining support across the political spectrum, and this bipartisan trend has influenced Coinbase's interactions with traditional financial institutions. Shan Aggarwal, Coinbase's vice president of corporate and business development, shared insights. In an interview with Decrypt at Messari Mainnet, he noted a change in conversations with big financial firms. These discussions have "taken a turn" in the past six to nine months. The new integration puts Coinbase on par with other platforms as OKX, Binance, and Kraken already offer this functionality. Taproot represents a significant milestone in Bitcoin's evolution. It's the largest upgrade since SegWit in 2017. The upgrade promised enhanced privacy, but Coinbase users were left waiting for years. Gregory Maxwell, a Bitcoin Core developer, proposed Taproot. The upgrade utilizes Schnorr signatures. These compress complex transactions into smaller, more efficient data packages. This compression reduces blockchain data storage. It improves scalability and lowers transaction fees. Taproot offers enhanced privacy features. Complex transactions, such as those requiring multiple signatures, can appear as standard Bitcoin transfers. This limits exposed data on the public blockchain and makes transaction tracing more difficult. Coinbase's adoption of Taproot is a significant step, bringing advanced Bitcoin features to a wider user base. The move could encourage broader adoption of Taproot. It may lead to increased use of its privacy and efficiency benefits. For Coinbase users, this update opens new possibilities as they can now participate fully in the Bitcoin network's latest advancements. Now, the focus shifts to user education. Coinbase may need to guide users on leveraging Taproot's benefits effectively.

Base, Coinbase's Layer 2 solution, has surpassed $2 billion in Total Value Locked (TVL). This milestone positions it as the second-largest optimistic rollup in the cryptocurrency market. The achievement signals growing confidence in Base as an Ethereum scaling solution. Data from DeFiLlama shows Base's TVL at $2.116 billion. This marks a 370% increase from $430 million at the start of 2024. The TVL includes $3.63 billion in stablecoins and comprises $671.21 million in 24-hour trading volume. Base now trails only Arbitrum among optimistic rollups on Ethereum. It leads in user activity with the highest number of active addresses and also tops daily transactions among its peers. Recent data reveals 1.1 million interacting users on Base in a single day. The platform registered 8,335 new wallet addresses during the same period, this growth is largely attributed to other protocols on the network. Coinbase launched Base in August 2023. The aim was to expand into the decentralized finance (DeFi) ecosystem. Base processes transactions off-chain as an optimistic rollup and then submits periodic summaries to the Ethereum mainnet. This approach reduces congestion and lowers transaction costs. High user activity has driven Base's recent growth. Its TVL jumped from $1.6 billion on August 24, 2024, to over $2 billion in weeks. Analysts predict further growth for Base. Some suggest its TVL could exceed $3 billion by year-end. This projection assumes current momentum continues. Key protocols have contributed to Base's success. Aerodrome surpassed $1 billion in total deposits by September 26. Uniswap has also played a significant role, adding over $220 million in deposits over the past year. Base's rapid growth underscores Coinbase's strategic DeFi expansion. The platform's user-friendly interface attracts users with its low transaction costs further boost its appeal. The surge in Base's TVL reflects broader trends in the Layer 2 market. It highlights growing demand for scalable blockchain solutions. As competition intensifies, Base's performance will be closely watched by industry observers.

Coinbase, the top US crypto exchange, has rolled out Coinbase Wrapped Bitcoin (cbBTC). It's a 1:1 Bitcoin-backed token on Ethereum. The move has set the crypto world abuzz. cbBTC aims to bridge Bitcoin with decentralized finance (DeFi). It's now live on Ethereum and Base blockchains. Users can access popular DeFi apps like Aave and Curve Finance. Coinbase's blog post explains the perks. "cbBTC removes a key point of friction," it states. Users can now provide Bitcoin as liquidity or use it as collateral in DeFi. The conversion process seems straightforward. When users send BTC from Coinbase to Base or Ethereum, it automatically becomes cbBTC. The reverse happens when cbBTC lands in Coinbase accounts. But not everyone's thrilled. Justin Sun, Tron's founder, is leading the pushback. He called it a "dark day for BTC" on Twitter. Sun's beef? He claims cbBTC lacks proof of reserve and audits. Sun didn't stop there. He warned that a single US subpoena could freeze all associated Bitcoin. "Essentially, it's just, 'Trust me,'" he mocked. The criticism isn't coming out of thin air. Recent drama around Wrapped Bitcoin (WBTC) has made folks wary. WBTC's custodian, BitGo, recently partnered with a Sun-affiliated company. It raised eyebrows about centralization. Amid the fuss, other players are jumping in. Investment firm 21shares announced its own wrapped Bitcoin, 21BTC. It's getting crowded out there. Some industry experts are chiming in. Fireblocks' VP, Arik Galansky, told Decrypt that WBTC hasn't kept pace with tech evolution. He thinks the market needs better alternatives. Vijay Pravin Maharajan from bitsCrunch pointed out the risks. He's worried about centralization and smart contract vulnerabilities. It's not all sunshine and rainbows in the wrapped Bitcoin world. Coinbase isn't taking the criticism lying down. They told Decrypt they're keeping tight control of the keys. No lending or funny business with the backing Bitcoin, they promise. Hours after launch, Coinbase had to issue a warning. Scammers were already trying to impersonate cbBTC. It's a jungle out there, folks. The debate rages on. Is cbBTC a game-changer or a ticking time bomb? Only time will tell. But one thing's for sure – the crypto world is never dull.

Base, Coinbase's layer-2 blockchain, has become the second-largest L2 network. It's a surprising twist. Base isn't exactly cutting-edge tech. The project launched last year using borrowed code - it's built on Optimism's OP Stack framework. Yet Base now holds an 18% market share among 74 active L2 networks. Only Arbitrum One beats it, with a 40% share. Base has leapfrogged over established players like Starknet, Polygon, and even Optimism itself. L2 networks aim to make Ethereum faster and cheaper. They bundle transactions and settle them on the main chain. It's a bit like filing records at the county clerk's office. But here's the kicker: marketing prowess trumps tech chops in the blockchain race. Coinbase's deep pockets and promo events have fueled Base's growth. Take their recent "Onchain Summer" campaign. It drew over 2 million unique wallets, and creators pocketed more than $5 million in mint revenue. "The results really blew us away," a Coinbase spokesperson gushed. Participation was 8x higher than last year, doubling internal expectations. Blockchain data backs this up. Token Terminal shows Base accelerating while other L2s slow down. Coinbase's not shy about splashing cash. They spent $165 million on marketing in Q2 2023 alone. That's double the previous year's figure. Base is raking it in, too. In Q1 2024, Coinbase reported $52.5 million in "other" transaction revenues, including Base's sequencer fees. But is it all smoke and mirrors? Are these real users or just crypto tire-kickers? Some reckon it's down to memecoins and easy onboarding from Coinbase. Rob Hadick of Dragonfly VC notes Base's popularity for swapping "longer-tail assets". But a closer look shows lots of memecoin action. That's notoriously fickle. Coinbase's smart contract wallet makes it a breeze to move tokens over. No seed phrases, no hassle. It's a game-changer for curious newbies. Oskari Tempakka from Token Terminal credits the Coinbase-Optimism combo. A U.S.-listed exchange plus Optimism's tech smarts? It's a potent mix. Base's rise shows that in crypto, as in life, it's not just what you know. It's who you know – and how well you can sell it.