Crypto, initially aimed at decentralizing finance, is increasingly mirroring traditional finance dynamics as centralization grows, particularly evidenced by the dominance of centralized stablecoins like USDC and USDT. Despite the focus on decentralization from protocols like Ethereum, the popularity of Base, a layer-two network incubated by Coinbase, raises concerns about crypto's drift towards centralization. Base's operation, linking closely to Coinbase for fee generation and user onboarding, invites criticism regarding regulatory arbitrage and questions the necessity of a public blockchain in this model. Although Base claims commitment to future decentralization, the trend suggests a merger between fintech and crypto, with major players like Coinbase positioning themselves akin to traditional financial institutions. This centralization trend challenges the core ethos of Bitcoin and decentralized finance (DeFi) and may lead to a diminished value proposition for Ethereum and other decentralized protocols over time.

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