Coinbase Listing Fuels ATOM’s Resilient Recovery Amid Market Volatility
Cosmos' ATOM token demonstrated remarkable resilience during a volatile 23-hour period, rebounding sharply after a brief dip. The token's recovery was bolstered by institutional interest and a key Coinbase listing, driving trading volume significantly above average. This article explores the factors behind ATOM's swift recovery and its implications for the broader cryptocurrency market.
ATOM Stages Swift Recovery Amid Volatility, Fueled by Institutional Interest
Cosmos' ATOM token rebounded sharply after a brief plunge, showcasing resilience during a volatile 23-hour window. The token dipped from $4.236 to $4.133 in a single hour on August 6 before rallying back to $4.235 by 05:00 UTC. Trading volume surged to 1,046,473 ATOM ($4.38 million)—well above the 24-hour average—as buyers defended critical support at $4.149.
The recovery coincided with Coinbase adding COSMOSDYDX to its listing roadmap, signaling institutional confidence in Cosmos SDK-based projects like dYdX. A breakout above $4.20 resistance was confirmed by the MOVE indicator, with final-hour volume spiking to $250,000. Despite broader crypto market turbulence, ATOM’s price action reflects growing momentum for the Cosmos ecosystem.
Bitcoin Lightning Network Capacity Decline Masks Underlying Growth
Bitcoin's Lightning Network has seen a 20% reduction in publicly advertised channel capacity since late 2023, dropping from 5,400 BTC to 4,200 BTC by August 2025. Yet this metric tells only part of the story—the network's utility continues expanding through private channels, custodial solutions, and protocol improvements.
Payment processors like CoinGate report Lightning now facilitates over 16% of crypto transactions, while Coinbase's integration drives 15% of Bitcoin withdrawals through the layer-2 solution. The capacity decline reflects optimization, not retreat, as routed payments surged 1,212% between 2021-2023 despite modest capacity growth.
Market observers note the dichotomy between raw capacity metrics and real-world adoption. As Lightning matures, its value proposition shifts from simple channel metrics to measurable commercial throughput—evidenced by bitcoin regaining payment dominance on platforms leveraging layer-2 solutions.
Coinbase Explores Blockchain Partnership with Karnataka in Strategic Pivot
Coinbase has initiated high-level discussions with Karnataka's IT minister, Priyank Kharge, signaling a strategic shift in its approach to India's blockchain ecosystem. The talks focused on developer tools, cybersecurity collaboration, and potential policy adjustments that could reshape India's onchain infrastructure.
The move comes after Coinbase's retreat from India's retail crypto market in late 2023 due to regulatory hurdles. By aligning with Karnataka—a tech hub increasingly embracing blockchain—the exchange aims to embed itself in India's digital public infrastructure through education initiatives and state-backed hackathons.
Paul Grewal, Coinbase's chief legal officer, framed the collaboration as foundational for India's onchain future. "The future is onchain—and it's being built here," he declared, underscoring the state's growing influence in blockchain development.
Galaxy Research Head Criticizes Ethereum L2s as 'ETH Extractive'
Alex Thorn, head of research at Galaxy, has raised concerns about the economic model of ethereum layer-2 (L2) networks, labeling them as "ETH extractive." In a recent analysis, Thorn highlighted that L2s retain the majority of fee revenue while contributing minimally back to Ethereum's base layer (L1).
Most L2s are controlled by single entities or foundations, creating a system where little value accrues to ETH holders. Thorn noted that many L2s don't even stake the ETH they collect in fees, further exacerbating the imbalance.
Post-EIP-4844 data reveals a stark disparity: L2s generate between $100,000 and $400,000 daily in user fees, while Ethereum L1 sees only about $10,000 per day in blob confirmation costs and gas spend. This leaves L2s with substantial profit margins, even after operational expenses.
The critique sharpens with comparisons between Base—a Coinbase-backed L2 using Optimism's OP Stack—and other L2s. Over 180 days, Base paid $4.4 million to the Optimism Collective, while all L2s combined contributed just $3.05 million to Ethereum L1 for blobs and gas. Coinbase's Q2 earnings from Base reached $14.9 million in fee revenue, with Ethereum capturing a fraction of that value.
Coinbase Expands Web3 Strategy with Embedded Wallet SDK Launch
Coinbase is accelerating its Web3 ambitions with the beta release of an Embedded Wallets SDK, marking a strategic push to dominate the emerging super app landscape. The new developer tool allows seamless integration of non-custodial wallets into dApps through email or social logins, eliminating cryptographic friction while preserving self-custody principles.
The infrastructure leverages Base L2's scalability while offering 4.1% USDC yields and integrated fiat ramps—a clear play to position Coinbase as the AWS of Web3 development. This wallet-as-a-service model could redefine user onboarding across DeFi and SocialFi verticals.
Market observers note the timing coincides with intensifying competition among exchanges to own the Web3 application layer. By abstracting blockchain complexity while maintaining decentralization, Coinbase's MOVE may set new standards for mass adoption.
Bitcoin Cash (BCH) Gains Momentum Ahead of August Halving Event
Bitcoin Cash (BCH) ROSE 2.36% to $568.90 as traders positioned for its upcoming halving event in August. Technical indicators suggest bullish momentum, with resistance looming at $608. The Relative Strength Index (RSI) at 56.51 points to further upside potential.
Market sentiment is buoyed by the halving, which will slash miner rewards by half—a mechanism historically linked to price appreciation due to reduced supply. Institutional interest is also growing, with Coinbase Derivatives launching BCH futures last week, triggering a 1.26% price bump.
