Coinbase’s Ethereum Layer-2 network, Base, found itself at the center of controversy during the celebration of its 1 billionth transaction.

The celebration included the release of an NFT, which inadvertently copied the work of digital artist Chris Biron.

Base Hits 1 Billion Transaction

On November 15, Coinbase-backed Base proudly announced that it had completed 1 billion transactions since its launch in August 2023. This milestone was achieved in just over a year, a remarkable feat compared to established networks like Bitcoin, which took more than 15 years to reach similar numbers.

Base’s rapid rise is no surprise. The network has quickly become the fastest-growing Ethereum layer-2 solution, surpassing competitors like Optimism and Arbitrum. A recent report by CoinGecko ranked Base as the second most popular blockchain in 2024, with the network now capturing nine times more interest than its closest Layer-2 competitor, Arbitrum.

“Base ecosystem has seen its share of investor interest increase by over 5 times since Q1, raising the layer 2 ecosystem’s ranking from seventh to second, and overtaking its layer 1 Ethereum ecosystem. This also means that the Base ecosystem now captures 9 times more interest than the next most popular layer 2 ecosystem Arbitrum,” Coingecko stated.

Market observers have attributed the network’s rapid growth to the robust support and resources provided by Coinbase, the $76 billion crypto exchange that operates Base. Moreover, Coinbase brand power as the largest cryptocurrency exchange in the US has also undoubtedly contributed to Base success.

NFT Controversy and Apology

To commemorate the 1 billion transaction achievement, Base minted an NFT. However, the artwork bore a striking resemblance to a creation by digital artist Chris Biron, who accused the network of copying his work without credit. Biron claimed that Base had already earned over $36,000 in profits from the NFT at the time of his complaint.

“I usually like it when someone recreates/remixes my work. But when a 76 billion dollar corporation copies it, sells it, and gets $36k+ in profit without attributing me at all, it feels less fun,” Biron stated.

In response to the backlash, Base lead developer Jesse Pollak issued a public apology, explaining that the incident was unintentional. The Coinbase-backed network also admitted that its artwork unintentionally mirrored Biron’s work and promised to improve its processes to prevent similar issues in the future.

“Creativity often draws from a pool of shared inspiration, and while designing this piece we unintentionally mirrored the work of another artist without attribution We’re sorry, and we’ll be sending 100% of the proceeds to Biron,” Base wrote.

Biron appreciated Base’s response, calling it a “class act” and praising the team for respectfully handling the situation.

Key figures in the crypto industry, including Coinbase CEO Brian Armstrong and Gemini co-founder Cameron Winklevoss, have expressed strong support for the newly established Department of Government Efficiency (D.O.G.E).

This initiative, announced under President Donald Trump, aims to reshape the US economy by tackling bureaucratic inefficiencies. Elon Musk and Vivek Ramaswamy lead the department.

Crypto Leaders Welcome D.O.G.E Initiative to Streamline US Governance

On November 17, Coinbase CEO Brian Armstrong highlighted the transformative potential of D.O.G.E. He described it as a unique opportunity to enhance economic freedom in the United States while reducing government size.

“The founding fathers were geniuses but (with humility) may have missed the adverse incentives which grow the size of democratic government over time (winning elections by promising more free stuff),” He wrote.

So, Armstrong suggested constitutional amendments to ensure the lasting impact of D.O.G.E. He proposed measures like capping total government spending at 10% of GDP or aligning incentives to promote fiscal discipline. Armstrong referenced Warren Buffett’s idea of disqualifying legislators who vote for unbalanced budgets from reelection.

The Coinbase CEO also acknowledged the need for flexibility during crises, such as wars, while emphasizing long-term controls to prevent runaway spending. Armstrong further proposed the creation of a sovereign wealth fund, where every citizen would hold a share. This, he argued, could enhance fiscal accountability and public engagement in financial decision-making.

Similarly, Gemini co-founder Cameron Winklevoss expressed his own optimism about D.O.G.E, emphasizing its potential to address inflation and financial inequality. He described inflation as a “hidden tax” that disproportionately impacts lower-income households.

Winklevoss believes that by targeting inefficiency and waste, D.O.G.E can play a crucial role in reducing inflation and easing economic pressure on vulnerable communities. He stressed that such reforms are essential to ensure a more equitable financial system.

“The importance of DOGE goes well beyond reigning in absurd government spending. It will lead to a decline in inflation which is a silent tax on all Americans that confiscates wealth and is also regressive, impacting low-income folks the most,” Winklevoss wrote.

Meanwhile, another industry leader Ripple’s Chief Legal Officer Stuart Alderoty has suggested an area of focus for the department. According to him, DOGE should investigate spending inefficiencies within the Securities and Exchange Commission (SEC). He specifically questioned the use of taxpayer money on certain SEC initiatives, such as a public video series involving SEC Chair Gary Gensler.

“Could you please provide an estimate of how much taxpayer money has been wasted on these?,” Alderoty questioned.

On Friday, November 15, Bitcoin’s (BTC) dominance — a metric tracking the cryptocurrency’s share of the overall market — showed readiness to climb to 65%. However, this scenario did not happen as Bitcoin’s price fell short of retesting $93,000, suggesting that the altcoin season cycle could be here.

This stagnation seems to have created an opportunity for altcoins, which have lagged significantly behind BTC. The pressing question now is whether Bitcoin dominance will continue to decline as altcoin prices surge.

Bitcoin Steps Back Amid Greedy Market

As of this writing, Bitcoin’s dominance has dropped to 60%. This decline contradicts some analysts’ expectations that Bitcoin’s price might rise as high as $100,000 within a few days.

According to BeInCrypto’s findings, this fall could also be linked to the rising performance of altcoins. Some days ago, the altcoin season index was 33. Today, according to data from Blockchaincenter, it has risen to 39.

This increase suggests that more altcoins within the top 50 are outperforming Bitcoin (BTC). Tokens like Bonk (BONK) and Ripple (XRP) have maintained their upward momentum, contributing to both the rise in altcoin’s market cap and the subsequent decline in Bitcoin dominance.

Further, the market’s extreme greed could have implications for Bitcoin’s trajectory. Currently, the Crypto Fear and Greed Index, which primarily gauges Bitcoin sentiment, has reached a striking “Extreme Greed” level of 90.

“Extreme Fear” typically indicates heightened investor anxiety, which can present a potential buying opportunity. Conversely, when investors become overly greedy, it typically indicates that the market may be ripe for a correction.

Therefore, considering the current outlook, it is likely that Bitcoin’s price could be due for a correction. This assertion also aligns with the sentiment of analyst Rekt Capital. According to him, altcoins might soon begin to break out as a result of Bitcoin’s dominance fall.

“Bitcoin Dominance — We are seeing the effects of the best-case scenario in full force. It’s Altcoin season.The pullback in BTC DOM to 57.68% is enabling this Altcoin Window. Continued dips to green will enable Altcoin breakouts,” Rekt Capital shared on X (formerly Twitter).

Altcoins Look to Hit Higher Highs

Meanwhile, the TOTAL2, which is the total market cap of the top 125 altcoins, including Ethereum (ETH), has reached $1.19 trillion. The last time it reached such a value was in June.

Based on the daily chart, TOTAL2 reached this point due to massive interest in altcoins and a breakout of a descending triangle. A descending triangle is typically viewed as a bearish pattern. However, it can also signify a bullish reversal if the price breaks out in the opposite direction, which is the case with the altcoins’ market cap.

Should this position accelerate, then the altcoin season could begin. But for that to happen, Bitcoin dominance has to keep falling, and the altcoin season index has to move much closer to 75 from 39.

If that happens, then the TOTAL2 could rise to $1.27 trillion. However, if Bitcoin’s price bounces above its all-time high, the altcoin season cycle may be delayed, and this prediction may be invalidated.