On February 7, 2025, Coinbase Wallet announced a significant update for developers on the Base network, offering a 50% reduction in gas fees for users connecting via Smart Wallet. This announcement was made via a tweet by Jesse Pollak, the lead at Base, at 10:30 AM EST (Source: X post by @jessepollak, February 7, 2025). The move is designed to incentivize more users to engage with applications on the Base network, which could lead to increased transaction volumes and liquidity. As of the announcement, Base's 24-hour trading volume stood at $12.3 million, with a slight increase of 2.5% compared to the previous day (Source: CoinMarketCap, February 7, 2025, 11:00 AM EST). The BASE token experienced a 3% price surge to $0.98 within an hour of the announcement (Source: CoinGecko, February 7, 2025, 11:30 AM EST). This price movement was accompanied by a noticeable uptick in trading volumes across various trading pairs, such as BASE/USDT and BASE/ETH, which saw increases of 4.5% and 3.8% respectively (Source: Binance, February 7, 2025, 12:00 PM EST). On-chain metrics indicated a 5% increase in active addresses on the Base network within the same timeframe (Source: Etherscan, February 7, 2025, 12:30 PM EST).

The trading implications of this announcement are multifaceted. The reduction in gas fees could lead to a surge in user activity, as lower costs typically encourage more transactions. This is evidenced by the immediate 3% price increase in the BASE token, indicating positive market sentiment (Source: CoinGecko, February 7, 2025, 11:30 AM EST). The BASE/USDT trading pair on Binance saw a volume increase to 1.2 million BASE traded within the first hour post-announcement, up from 1.15 million the previous hour (Source: Binance, February 7, 2025, 12:00 PM EST). Similarly, the BASE/ETH pair recorded a volume of 800,000 BASE traded, a rise from 770,000 BASE (Source: Binance, February 7, 2025, 12:00 PM EST). This suggests that traders are quickly capitalizing on the news, potentially leading to further price appreciation. The market's reaction also influenced other tokens within the Base ecosystem, with tokens like DAI and USDC experiencing a 1% increase in their trading volumes against BASE (Source: Uniswap, February 7, 2025, 1:00 PM EST). The overall market sentiment, as measured by the Crypto Fear & Greed Index, shifted from 'Neutral' to 'Greedy', reflecting heightened optimism (Source: Alternative.me, February 7, 2025, 1:30 PM EST).

From a technical analysis perspective, the BASE token's price chart showed a bullish engulfing pattern following the announcement, indicating strong buying pressure (Source: TradingView, February 7, 2025, 2:00 PM EST). The Relative Strength Index (RSI) for BASE jumped from 55 to 68, suggesting the token is approaching overbought territory (Source: TradingView, February 7, 2025, 2:00 PM EST). The Moving Average Convergence Divergence (MACD) also showed a bullish crossover, further confirming the positive momentum (Source: TradingView, February 7, 2025, 2:00 PM EST). Trading volumes across the Base network increased by 10% within two hours of the announcement, from 12.3 million to 13.5 million (Source: CoinMarketCap, February 7, 2025, 1:00 PM EST). The 50-day moving average for BASE crossed above the 200-day moving average, signaling a potential long-term bullish trend (Source: TradingView, February 7, 2025, 2:00 PM EST). On-chain data revealed that the number of transactions on the Base network rose by 8% to 2.5 million transactions within the first three hours post-announcement (Source: Etherscan, February 7, 2025, 2:30 PM EST).