Coinbase Prepares for Corporate Blockchain Shakeout

Cryptocurrency and blockchain experts are warning of an impending shakeout in the corporate blockchain sector. According to Coinbase CEO Brian Armstrong, many of the 110 corporate blockchains currently in existence will struggle to survive due to fragmented liquidity and users.

A report by L2Beat shows that only 24 of these networks were processing more than two user operations per second as of July 31, with most trailing far behind. This has led experts to compare the situation to the stablecoin market, where numerous companies introduced dollar-linked tokens but activity concentrated around Tether and $USDC.

'I expect corporate networks to encounter the same pressure,' Armstrong said during Coinbase's earnings call. 'Some specialized chains may remain independent, but others could eventually decide that the cost of maintaining separate infrastructure exceeds the value of controlling it.'