Coinbase’s Layer 2 Blockchain Set for Public Rollout Next Week

Jimmy Aki
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U.S.-based exchange Coinbase has announced that its most anticipated Base, a versatile Layer-2 blockchain, will debut on August 9th, 2023.

Blockchain experts believe the new layer-2 chain will enable users to bridge their ether (ETH) to Base and mark a major advancement in the blockchain industry.

Base Represents a New Horizon for Coinbase Web3 Ecosystem

Coinbase, the prominent centralized cryptocurrency exchange in North America, is significantly moving towards embracing decentralization.

On August 3rd, the trading company unveiled “Base,” a novel Ethereum layer-two (L2) blockchain network deployed on Optimism technology. Its public launch is scheduled for August 9th.

This strategic step marks a major shift in Coinbase’s business approach, positioning it as a gateway to the decentralized web3 ecosystem.

The company has also announced that enthusiasts can begin funding ether on Base, even before the layer-2 network goes public in the coming days.

Jesse Polak, the lead of Base and head of protocols (HOP) at Coinbase, exclusively told TechCrunch through a Chain Reaction that onchain activity is experiencing immense growth.

The HOP cited that the use cases embodied through decentralized applications (dApps) to bring media, music, and games on the onchain have soared.

As detailed in the exclusive interview, Polak highlighted Base versatility as an open and permissionless ecosystem that integrates all the tools for developers to build utility-driven applications and make the crypto world exciting.

Prior to the Base launch announcement, the platform had undergone extensive testing on the testnet, a phase dedicated to evaluating the blockchain network, from late February to mid-July.

Following this, it entered the builder-only phase, enabling developers to access and contribute to its development through a series of tests on various decentralized applications (dApps).

This announcement coincides with Coinbase’s upcoming second-quarter earnings report and marks the commencement of “Onchain Summer.”

The kickoff of the Onchain Summer initiative is geared toward redefining the crypto narrative as a fun and engaging ecosystem by partnering with over fifty industry-leading brands, including Coca-Cola, Atari, and OpenSea.

More so, notable creators and developers globally are encouraged to participate in building applications and artistic creations on the Base system and propelling a new vision of a decentralized reality.

Meme Frenzy Drives Users to Bridge Over $91.7 Million Worth of $ETH to Base Layer-2 Chain

BALD, the tradeable asset available on LeetSwap, a decentralized exchange (DEX) built on top of Base, experienced an extraordinary surge on July 31st.

The digital asset price value skyrocketed by approximately 4,000,000% from issuance to its peak, with over $100 million traded in a mere 24 hours.

Screen capture of CoinMarketCap market data of $BALD growth trajectory for July 31st.

Coinbase's Layer 2 Blockchain Set for Public Rollout Next Week
Screen capture of CoinMarketCap market data of $BALD growth trajectory for July 31st.

The news of this unprecedented surge rapidly went viral within crypto communities on the popular social media app X, luring many traders to bridge their funds to the network in pursuit of extraordinary gains.

Other tokens deployed on the Base layer-2 chain, such as Brian ($BRIAN), Toshi ($TOSHI), and Basedbot ($BOT), also experienced remarkable surges of several thousand percent.

The recent frenzy in the meme sphere resulted in a significant influx of funds to the Coinbase nascent layer-2 network.

Dune, a reliable on-chain data, reports that over $91.7 million worth of $ETH has been bridged to the Base network in the past 10 hours amid the rise of explosive rise of $BALD and other memecoins.

Screen capture of Dune’s onchain data of $ETH bridged to Base.
Screen capture of Dune’s onchain data of $ETH bridged to Base.

Millions were sent by traders via a one-way bridge to the Base blockchain, anticipating lucrative returns, despite the blockchain not being officially open to the public yet.

Polak told TechCrunch he was surprised at the high influx of $ETH bridged even though it was a sight of what was to come.

To transform the internet through Base, Coinbase will partner with Prop House, a decentralized autonomous organization (DAO), to offer over 100 $ETH ($185,000) in grants to developers building on Base this summer.

Polak cited that Coinbase is excited to see the development of applications stand up alongside other top DeFi activities in motion.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.