Layer 2 developments reshape crypto markets as Coinbase Base pivots from OP Stack

Overnight trading delivered a mixed tone for global investors, with crypto markets still digesting new layer-2 announcements and shifting expectations around U.S. monetary policy.

CoinDesk 20 under pressure as bitcoin holds marginal gains

The CoinDesk 20 index (CD20) was little changed since midnight UTC, yet underlying crypto currency markets remained under pressure. Moreover, all but one member declined, with bitcoin (BTC) the sole outlier, up less than 0.1% in early trade.

The index has dropped 2% in 24 hours, signaling persistent weakness beneath the surface. However, spot bitcoin exchange-traded fund flows stayed negative for a second consecutive session, with $133 million in net outflows on Wednesday, while spot ether (ETH) ETFs also posted redemptions.

The second-largest cryptocurrency has slipped another 0.2% since midnight, extending this week’s underperformance versus BTC. That said, investors will watch whether upcoming macro data can stabilize risk appetite before the weekend.

Coinbase Base exits OP Stack, raising questions for Optimism revenue

The key overnight development was Coinbase announcing that its layer-2 network Base will move away from the OP Stack, the open-source modular rollup framework developed by Optimism that currently powers the chain. The OP Stack lets networks such as Base and Unichain operate as low-cost, Ethereum-secured layer 2s.

These chains are fully compatible with the Ethereum Virtual Machine (EVM) and aligned with Optimism‘s broader Superchain vision. However, rather than continuing to rely on multiple external contributors for core upgrades and protocol changes, Base plans to consolidate development into a self-managed codebase.

This shift gives the team greater control over infrastructure, roadmap and technical evolution. Moreover, the coinbase base migration carries significant implications for Optimism, which has historically relied on Base for the bulk of Superchain-generated revenue.

Base has often delivered more than 90% of Superchain income that accrues to the Optimism Collective. The announcement therefore represents a meaningful potential headwind for Optimisms revenue outlook, with the OP token dropping 24% since Wednesday following the news.

Ether.fi chooses Optimism as Robinhood Chain testnet gains traction

In a more positive layer 2 developments storyline, ether.fi said it will migrate its Cash product to Optimism’s OP Mainnet. The move will bring around 70,000 active cards, 300,000 accounts and millions of dollars in total value locked to the network, offsetting some concerns about the OP Stack transition.

The non-custodial payment card lets users spend ETH, BTC and stablecoins at over 100 million Visa merchants. It offers 3% crypto cashback and processes roughly $2 million in daily transaction volume, underlining the real-world payments angle of the etherfi cash migration.

In another notable layer-2 development, Robinhood reported that its testnet recorded 4 million transactions in its first week. The Arbitrum-based Robinhood Chain is designed to support tokenized real-world assets and an expanded suite of onchain financial services.

This activity signals the firm’s continued push into blockchain infrastructure beyond pure brokerage. Moreover, early traction on the robinhood chain testnet suggests growing user interest in aligning trading, custody and settlement on a single, scalable stack.

Macro backdrop: Fed meeting minutes show growing policy split

While these ecosystem headlines remain constructive, broader crypto markets continue to move within a wider downtrend. The latest Federal Reserve meeting minutes, released yesterday, highlighted a growing divergence among policymakers on the path of interest rates and future easing.

Several officials indicated that further rate cuts should be paused for now, with easing later in the year only if inflation keeps falling. Moreover, the FED meeting minutes reinforced the message that policymakers remain data-dependent, a stance that has contributed to choppy risk sentiment across digital assets.

Against that backdrop, traders are also tracking continued bitcoin ETF outflows, especially after two straight days of negative flows. That said, upcoming U.S. labor data and central bank speeches could help clarify the macro narrative in the days ahead.

Key events to watch on February 19

Looking ahead, a dense calendar could inject fresh volatility. On Feb. 19 at 8 a.m., Zama will host a live presentation of its 2026 roadmap, offering a window into future encryption and privacy tooling.

Also on Feb. 19, U.S. Federal Reserve officials Raphael Bostic, Michelle Bowman and Neel Kashkari are due to speak throughout the day. Moreover, at 8:30 a.m. the U.S. will release initial jobless claims for Feb. 14, with estimates at 225K versus the previous 227K.

Crypto-equity traders will also watch Riot Platforms (RIOT), which reports post-market on Feb. 19. That said, for a broader slate of catalysts, market participants can refer to CoinDesk‘s “Crypto Week Ahead” overview.

Governance and token events

On the governance front, ENS DAO is voting to register the on.eth name and establish it as an onchain registry for blockchain metadata. Voting ends on Feb. 19, setting an important precedent for domain-style identifiers on Ethereum.

Also on Feb. 19, Resolv is scheduled to complete rollout of updated USR/RLP yield distribution parameters. Moreover, Injective will start its INJ Community Buyback Round #226, continuing a long-running token-support program.

Spot prices and macro market snapshot

By early session, BTC traded at $66,896.68, up 0.87% from 4 p.m. ET Wednesday but down 1.31% over 24 hours. ETH changed hands at $1,966.13, up 1.29% on the day yet lower by 1.49% across 24 hours.

The CoinDesk 20 index stood at 1,932.97, up 0.39% but still down 2.57% over 24 hours, underscoring how crypto markets down conditions persist despite modest intraday rebounds. The Ether CESR Composite Staking Rate was unchanged at 2.81%, while the BTC funding rate sat at 0.0056% (6.1747% annualized) on Binance.

In traditional macro markets, the DXY dollar index was flat at 97.67. Gold futures traded unchanged at $5,009.90, while silver futures climbed 1.13% to $78.47, adding a modest safe-haven bid.

In equities, Nikkei 225 closed up 0.57% at 57,467.83, and Hang Seng gained 0.52% to 26,705.94. However, Europe was softer, with the FTSE down 0.63% at 10,618.95 and the Euro Stoxx 50 falling 0.81% to 6,054.02.

In the U.S., the DJIA closed Wednesday up 0.26% at 49,662.66, the S&P 500 rose 0.56% to 6,881.31 and the Nasdaq Composite advanced 0.78% to 22,753.63. Moreover, S&P/TSX Composite finished 1.5% higher at 33,389.73 and the S&P 40 Latin America index added 0.37% to 3,707.85.

In rates and futures, the U.S. 10-Year Treasury yield ticked up 1.3 basis points to 4.094%. E-mini S&P 500 futures slipped 0.3% to 6,873.25, E-mini Nasdaq-100 futures fell 0.39% to 24,857.50 and E-mini Dow Jones Industrial Average Index futures declined 0.35% to 49,549.00.

Bitcoin network and dominance metrics

On-chain, the seven-day moving average BTC hashrate printed at 1,057 EH/s, underscoring robust network security. CME futures open interest reached 118,610 BTC, reflecting continued institutional participation in derivatives markets.

BTC priced in gold stood at 13.4 oz., while BTC vs gold market cap was measured at 4.47%. Moreover, BTC Dominance sat at 58.74%, up 0.26%, illustrating bitcoins growing share of aggregate market capitalization.

The ether-bitcoin ratio was at 0.0294, down 0.09%, highlighting relative ETH underperformance. Hashprice in the spot market registered $33.63, and total daily network fees reached 2.31 BTC, equivalent to $155,155.

Technical view: altcoins test 50-week EMA versus bitcoin

Technically, the ratio of altcoins excluding the top 10 to the bitcoin price continues to rebound from key weekly support. The gauge is now testing the 50-week exponential moving average, a level closely watched by trend followers.

A decisive break above this area would imply continued resilience of smaller-cap tokens relative to BTC. Moreover, analysts argue this move is most likely driven by altcoins having become extremely oversold in prior weeks, rather than a broad shift in long-term leadership.

Crypto equities performance

In listed digital-asset proxies, Coinbase Global (COIN) closed Monday at $164.05, down 1.19%, then rose 0.24% in pre-market to $164.45. Circle Internet (CRCL) ended at $63.15, up 2.48%, and added 0.19% pre-market to trade at $63.27.

Galaxy Digital (GLXY) closed at $21.73, up 2.02%, with pre-market gains of 0.74% to $21.89. Bullish (BLSH) finished at $31.85, down 0.47%, and was unchanged in pre-market trading, reflecting relatively muted sentiment.

MARA Holdings (MARA) closed at $7.50, off 0.13%, then ticked 0.40% higher to $7.53 pre-market. Riot Platforms (RIOT) ended at $15.49, up 5.73%, and edged 0.19% higher to $15.52 before the open.

Core Scientific (CORZ) closed at $17.27, up 0.23%, while CleanSpark (CLSK) finished at $9.27, down 0.11% and unchanged in pre-market. Moreover, the CoinShares Valkyrie Bitcoin Miners ETF (WGMI) closed at $40.04, adding 0.10%.

Exodus Movement (EXOD) slipped 2.08% to close at $9.88. Strategy (MSTR) ended the session at $125.20, down 2.70%, and was flat in pre-market activity, signaling cautious appetite for leveraged bitcoin treasury plays.

Strive (ASST) closed at $8.05, down 1.59%, while SharpLink Gaming (SBET) finished at $6.60, off 0.90%. Moreover, Upexi (UPXI) fell 4.17% to $0.69, and Lite Strategy (LITS) closed at $1.10, unchanged on the day.

ETF flows: bitcoin, ether and Solana divergence

Flow data from Farside Investors showed daily net flows for BTC ETFs at negative $133.3 million, with cumulative net flows of $54.07 billion and total holdings of roughly 1.26 million BTC. Daily net flows for ETH ETFs came in at negative $41.8 million.

Cumulative net flows into ETH funds reached $11.68 billion, with total holdings around 5.74 million ETH. Moreover, the data underscore how bitcoin ETF outflows and ether redemptions have weighed on sentiment, even as some investors continue to accumulate exposure via dips.

Overnight highlights showed bitcoin, ether and XRP ETFs broadly bleeding assets, while Solana (SOL) bucked the trend. U.S.-listed spot crypto markets news products were mostly in the red, yet SOL ETFs recorded $2.4 million in net inflows, lifting cumulative inflows to nearly $880 million.

While you were sleeping: gold, Europe and bitcoin volatility

Gold recaptured the $5,000 mark after jumping 2% on Wednesday, as traders focused on the Fed’s rate path. On Thursday, bullion climbed as much as 0.9%, while silver rallied about 3%, reinforcing demand for traditional hedges.

European shares slipped as investors sifted through a mixed earnings slate from Airbus, Rio Tinto and Nestle. Moreover, risk appetite in regional equities remained fragile, even as U.S. benchmarks held near record territory.

Bitcoin shook off U.S. session losses, trading around $67,000 after briefly dipping near $65,900. The move came as traders assessed President Donald Trump’s claims that the U.S. trade deficit was cut by 78%, adding another macro talking point to a volatile backdrop.

Broader themes and related coverage

Beyond day-to-day price moves, structural themes continue to shape native markets crypto trends. Stablecoin volume reportedly reached $35 trillion in 2025, while the illicit share of flows remained below 0.5%, according to recent research.

Analysts also highlighted that bitcoin and ether have risen as altcoins lag in low-volatility trade, a pattern that often emerges in maturing crypto bear markets. Moreover, new survey data suggested 77% of stablecoin users would open a wallet with their bank, pointing to growing convergence between traditional finance and digital money.

On the capital markets side, Ledn raised $188 million with the first bitcoin-backed bond sale in the asset-backed market. Other headlines included WLFI surging 10% after an Apex stablecoin deal, Coinbase enabling XRP, ADA and dogecoin holders to borrow up to $100,000 without selling, and lingering concerns around crypto markets crashing as bitcoin flirts with logging its longest losing streak since 2022.

Overall, the near-term backdrop for digital assets remains cautious, with ETF outflows, policy uncertainty and shifting layer-2 alliances all weighing on sentiment, even as select sectors and protocols show signs of resilience.