- Coinbase launched its layer two network Base built on Ethereum on Friday.
- Coinbase will be competing directly with the likes of Polygon and Optimism, which dominate the Dapp market.
- The crypto exchange also launched a commemorative NFT that can be minted freely.
Coinbase entered the layer 2 (L2) market on Friday after launching its own L2 network named ‘Base’. The network has been hailed by the cryptocurrency exchange as Coinbase’s contribution to the core infrastructure of the crypto economy. Although built on Ethereum, Base could attract competition from one of its collaborators.
Coinbase L2 on Ethereum
Announcing the testnet launch of Base, Coinbase stated that the network would be aimed at offering a secure, low-cost, developer-friendly way to build Dapps. Coinbase intends to onboard over a billion users to the chain, and in order to do so, it is painting itself as an open ecosystem.
Nevertheless, despite being built in collaboration with Optimism, Base will launch in the same sector that Optimism is a huge part of. The L2 market includes major players like Polygon, Arbitrum as well as Optimism, which host hundreds of Dapps on their network.
Even though these chains have the advantage of being longer in this space, Coinbase has a significant upper hand in the form of resources that it intends to leverage. The company has a plethora of products and over 100 million customers, which would prove essential in scaling the L2. Commenting on the same, Coinbase noted,
“Seamless Coinbase product integrations, easy fiat onramps, and powerful acquisition tools enable developers to serve the 110M+ verified users and to access $80B assets on platform in the Coinbase ecosystem.”
To put this into perspective, Optimism, with all its protocols combined, has about $1.92 billion in total value locked (TVL). Polygon, too, despite having over 372 Dapps on the network, has about $1.18 billion in TVL. The Decentralized Finance (DeFi) market suffering losses over the last year made it worse for these chains and may even present some troubles to Coinbase’s Base.
However, Base, in its introduction, called itself a bridge to other Ethereum L1 and L2 chains as well as other L1 ecosystems like Solana. Base encourages developers to build their Dapp on their L2 but go beyond the restraints of the network and connect to other chains as well. How well this plays out is yet to be seen.
Coinbase joins L2 and NFTs in one go
With the launch of Base, the L2 also marked the launch of its NFT collection titled “Base, Introduced”. The commemorative NFT has been launched to celebrate the L2 and can be minted freely by anyone.
At the time of writing, nearly 42,000 such NFTs had been minted five hours since the launch of Base.
COIN 1-day chart
Coinbase’s COIN stock price, although noted no change even as the market came close to the closing bell. Trading at $62.44, COIN noted a 2.38% decline in value despite being up by 2.06% over the last 24 hours.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.