American crypto exchange Coinbase launches Base, its Ethereum layer-2 network
American cryptocurrency exchange Coinbase has expanded its offerings beyond trading with the launch of Base, its Ethereum layer-2 network. Built on top of the Ethereum scaling solution Optimism, Base serves as an on-chain ecosystem for not only Coinbase’s own products but also for decentralized apps developed by other individuals and companies. With a total value locked (TVL) of $419 million, Base has quickly become a hub for decentralized finance (DeFi) and applications. It has attracted prominent DeFi projects and generated significant profit for Coinbase. The goal is to attract millions of users and become a foundational layer for decentralized commerce and activity.
Base’s Impact: A New Definition of a Crypto Exchange
The launch of Base has redefined the perception of Coinbase as just a centralized crypto exchange. It has positioned Coinbase as a foundational layer for decentralized commerce and activity, comparable to some of the largest blockchain networks in the world. Base’s broad appeal to third-party developers, combined with Coinbase’s backing, makes it an attractive platform for building decentralized applications. Base has already surpassed Solana in terms of TVL and has seen more daily activity than even Ethereum at certain points. Its success has inspired other exchanges like Kraken and OKX to develop their own layer-2 networks.
The Power of Base: A Hub for DeFi and Creative Economy
Base has quickly established itself as a hub for decentralized finance (DeFi) and applications, attracting prominent brands like Coca-Cola and Showtime. It offers cheaper and faster on-chain transactions compared to Ethereum while maintaining security. The goal is to onboard one billion users by providing not only financial services but also opportunities in art, music, gaming, and consumer products. The focus on culture-related projects appeals to users who may have less experience with cryptocurrencies. Base’s success lies in its ability to navigate regulatory challenges and position itself as a trusted platform for retail consumers.
Hot Take: Coinbase’s Base Redefines the Role of Crypto Exchanges
The launch of Coinbase’s Base has transformed the perception of crypto exchanges, expanding their role beyond trading and into foundational layers for decentralized commerce. Base’s success in attracting third-party developers and prominent brands demonstrates its potential as a hub for decentralized finance and applications. With its layer-2 network built on Optimism, Base offers faster and cheaper transactions compared to Ethereum. Coinbase aims to leverage its mainstream reputation to attract millions of new users and become a central player in the mass adoption of blockchain technology. As other exchanges follow suit, a race for sustainable ecosystems may emerge.
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