This week, the market was accompanied by the geopolitical conflict between the United States, Iran and Israel. The overall market was in a state of high volatility, especially Trump himself was wavering on the situation. On a macro level, the Federal Reserve maintained a hawkish tone, and the stablecoin track continued to heat up. The US Senate voted to pass the GENIUS Stablecoin Act, which will be submitted to the House of Representatives for deliberation. JD.com, digital banking giant Revolut and other institutions are making full efforts to deploy. The concept of currency stocks Circle maintained its gains, while TRX and FET were listed on the US stock market through backdoor listings.

This weekly report focuses on the Coinbase narrative.

1. Coinbase Narrative

This week, Coinbase has been active in product innovation, cooperation expansion and regulatory progress, especially in the application of stablecoins and the integration of traditional finance, showing its strategic ambition. The combination of the stablecoin strategy + the surge in strongly related stocks Circle + the layout of the tokenized US stock track has made the entire Base ecosystem perform strongly in the near future. Coin stock once rose by more than 10% in the early morning of the 19th.

1. Product innovation

On June 13, Coinbase announced plans to integrate its main application with the DEX service on the Base chain, enabling users to conduct on-chain transactions directly within the Coinbase app without leaving the platform. This move aims to improve the accessibility of DeFi on the Base chain by bridging the centralized user experience (UX) with decentralized infrastructure.

It is worth noting that Coinbase is different from Binance Alpha. Binance Alpha has a clear entry threshold when listing coins. Project owners must sacrifice a certain share of tokens to subsidize users in order to qualify for Alpha. The DEX integration function of the Coinbase APP will provide all assets on Base to users through DEX, which means that all projects listed on the Base chain can be traded conveniently on the exchange at the first time.

As the core DEX on the Base chain, Aerodrome plays an important role in this functional integration, and its growth potential is worth looking forward to.

Data shows a surge in market interest

• After the news was released, AERO's transaction volume quickly climbed from 50M to around 200M in a short period of time.

• Contract open interest rose to $53 million from $21.5 million at the beginning of the year, a high for the year, as traders bet on gains.

• Core participants in the Base chain DeFi ecosystem: Aerodrome ranks first in transaction volume, number of active wallets and total locked value (TVL) on Base, accounting for about 55% of Base DEX transaction volume, with a TVL of more than US$1 billion and an average daily income of approximately US$400,000.
• Traffic growth: With the subsequent influx of 110 million real-name authenticated users in North America, the integration of Coinbase will directly bring traffic and user growth to Aerodrome.
• Binance expects: Cake of the same type is currently available on Coinbase, and it is not ruled out that Aerodrome will be listed on Binance spot in the future (Aero is currently in Alpha and has launched contracts).
• Protocol revenue: Similar to PancakeSwap of Binance Alpha, it has benefited from the success of Binance Alpha, with a weekly trading volume of more than 80 billion US dollars, soaring to the top of the DEX rankings, surpassing Uniswap and Raydium, and a daily profit of 1-2 million US dollars. After Aerodrome becomes the interface for DEX to access Coinbase APP, its revenue will be greatly increased.

However, Aerodrome has not shown a significant increase in protocol revenue and still maintains its previous position. This wave of rapid price increases is more of an emotional response. The main expectations for participation are the strong performance of Circle, which is strongly associated with Coinbase, and the construction of the platform itself, so whether to get on board at this time needs to be cautious.

Is it possible for Coinbase to follow Binance’s lead and launch a similar points feature?

Binance's Alpha 2.0, which bridges the gap between CEX and DEX transactions, was launched on March 18. The Alpha Point scoring system, which will determine the wallet TGE and Alpha short investment qualifications, will be launched on April 25.

Performance after Alpha 2.0 was released (3.18-4.24)

The trading volume of Binance Alpha on Binance's main site is about 9M per day, accounting for about 1% of pancakeswap (based on an average of 1B per day). The price of Cake rose from 1.8U on the 18th to a maximum of around 2.8U, but after the emotional hype, it fell back to around 1.5U.

Performance after the introduction of the Alpha Point scoring system (4.25)

Binance Alpha's trading volume on Binance's main site is about 1.4 billion per day, accounting for about 40% of pancakeswap (3.5 billion per day). Despite the significant increase in trading volume, Cake's TVL has not changed much, and its price performance has also been slightly weak, rising from 2U on the 18th to a maximum of around 2.7U, and currently falling back to around 2.3U.

Overall, the introduction of the points system has limited impact on the Binance ecosystem and has not directly reflected in the price. Most traders mainly earn profits by swiping relatively stable trading pairs such as ZKJ and Koge (before the crash).

About AERO

1. If the relevant points system is not launched and it is only used as a DEX tool, there will be a wave of price speculation in the short term, and then it will fall back quickly.

2. If a similar points system is introduced in the future, the interaction may not be beneficial to the Coinbase ecosystem. It mainly depends on whether Coinbase officials and project parties can directly transmit the value of the AERO currency.

However, considering that PancakeSwap’s transaction fees are mainly allocated to liquidity providers (LP) as rewards [Aerodrome’s fee income supports AERO prices through the veAERO mechanism, and value transmission is more direct ] and Coinbase officials recently provided airdrop rewards to users who locked 2500+ veAERO tokens. The subsequent development of AERO is worth watching.

2. Cooperation and Ecosystem Expansion

With the help of the Stablecoin Act, Coinbase is promoting the use case adoption of USDC to make it the world's dominant dollar-backed stablecoin, which is closely related to its broader international expansion strategy. At the same time, if SEC regulation is relaxed, the future Coinbase APP is likely to fully integrate spot, contracts, DEX and coin stocks.

Moreover, Coinbase itself is closely related to the interests of the Trump family. Coinbase is not only a major supporter of Trump's inaugural fund PAC (Political Action Committee), but also sponsored the military parade in Washington, D.C., which Trump has always wanted. Coinbase is clearly seeking strategic benefits through donations and public support for Trump's encryption policy.

II. Policy Supervision

1.【6.18】The U.S. Senate voted to pass the GENIUS Stablecoin Act

The U.S. Senate passed the bill with 68 votes in favor and 30 votes against, and 18 Democrats and the majority of Republicans jointly supported submitting it to the House of Representatives for deliberation. Trump expressed the hope that the House of Representatives can quickly promote legislation and quickly pass the stablecoin bill.

Disclosures and Restrictions

Disclosure requirements: Members of Congress and executive officials holding more than 5,000 stablecoins must disclose their holdings to increase transparency.

Profit Restrictions: These officials are prohibited from profiting from stablecoins, but the president is not subject to this restriction.

Controversy: The exemption has sparked criticism regarding conflicts of interest, particularly given President Trump’s cryptocurrency business activities.

The provision was passed on June 17, 2025, with a vote of 68:30, showing bipartisan support, but it also went through intense negotiations. Democratic lawmakers tried to pass an amendment to prohibit the president from profiting, but failed.

Special thanks

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Written by: Nora / WolfDAO

Editorial review: Mat / Nora

Thanks to the above partners for their outstanding contributions to this weekly report. This weekly report is published by WolfDAO for learning, research or appreciation only.