The Protocol Weekly Update: Crypto Insights from the U.S. Presidential Debate

The Protocol Weekly Update

This week’s edition of The Protocol dives into the lively crypto discussions following Tuesday’s U.S. presidential debate, which proved to be as bizarre and entertaining as one might expect.

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Polymarket bettors had an extra screen to keep an eye on during Tuesday’s debate. (Sam Reynolds)

THE GREAT DWEBATE: The excitement of tuning into the U.S. presidential debate between former President Donald Trump and Vice President Kamala Harris was almost matched by the activity on the prediction-betting platform Polymarket and the surge of memecoins emerging from the token launchpad Pump.fun. As the debate unfolded, the odds on Polymarket began to shift, indicating that Harris was gaining the upper hand. Notably, crypto-friendly money manager and former Trump White House communications director Anthony Scaramucci tweeted, “Trump just getting destroyed,” along with a screenshot from Polymarket about 40 minutes into the debate.

The night also witnessed a flurry of side bets and the launch of numerous memecoins, including whimsical names like DWEBATE, DOMALA TRUMPIS, PEPEDENTIAL DEBATES, and WW3. These were designed to either poke fun at the debate or highlight some memorable moments, although many names certainly strayed far from family-friendly. Some Polymarket bets yielded significant returns when Trump made a controversial claim—deemed false by the Wall Street Journal—that migrants were “eating the dogs” in Springfield, Ohio. This absurd remark even inspired new memecoins like EATING DOGS AND CATS.

For those hoping for in-depth discussions on crypto policy during the debate, disappointment was the order of the day, as there was not a single mention of Bitcoin or digital assets. Nevertheless, the crypto community was very much alive on social media.

Notably, at least 12 memecoins named “Run Spot Run” emerged on Pump.fun following a comment during the debate by former President Donald Trump. (Pump.fun)

ALSO: Coinbase Layer-2 Success: Marketing Triumphs Over Innovation

A recent chart from on-chain data provider Token Terminal highlights how the Coinbase layer-2 network, Base, has been accelerating in recent months while other layer-2 solutions have faced declines. (Token Terminal)

In the competitive landscape of layer-2 blockchains built on Ethereum, Coinbase’s own version, Base, may not be the most technologically innovative. Launched last year, it utilized code from the Optimism project, leveraging its OP Stack framework for creating new layer-2 networks.

Despite this, Base has impressively climbed to the No. 2 position on the L2Beat leaderboard, claiming an 18% market share of 74 active layer-2 networks. While top-ranked Arbitrum’s Arbitrum One holds a commanding 40% share, Base has overtaken older projects with established reputations for innovative development, such as Starknet and Polygon.

This situation illustrates that, much like in many sectors, the pursuit of blockchain dominance often hinges more on marketing prowess and a robust budget for customer acquisition than on being the most advanced technology. Coinbase has fueled Base’s growth through strategic advertising and promotional activities, including the recently celebrated event dubbed “Onchain Summer.”

The lingering question is whether this surge in activity is sustainable. Are the new accounts legitimate users with genuine on-chain needs, or merely a wave of curious testers exploring the various protocols on Base? Are they opportunistic traders looking to capitalize on limited-time promotions, or are they accumulating usage in hopes of securing future token rewards?

Click here for the complete story by Ian Allison and Bradley Keoun

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