Base: The New King of L2s Backed by Coinbase

Coinbase's breakout L2, Base, has quickly become one of the most prominent spots to be onchain this cycle, solidifying itself as one of Ethereum's most innovative corners.

Base, the breakout Layer 2 (L2) from Coinbase (NASDAQ:COIN), has quickly become a hotbed of activity onchain this cycle, establishing itself as one of the most innovative corners of Ethereum (CRYPTO:ETH).

Launched in July 2023, Base was built on the OP Stack to enable cheaper and faster Ethereum transactions, a critical feature in driving its success. Since its inception, Base has developed a vibrant ecosystem full of DeFi, NFTs, and consumer-friendly apps that’s put it at the forefront of all onchain trends. It partnered with Stripe for their upcoming stablecoin service, became a hub for launching Layer 3 (L3) solutions, and has consistently been the center of liquidity rotations that continually spark calls for “Base Season.” It has even overtaken Optimism in onchain TVL value!

In this article, we’ll examine what makes Base stand out from other L2s, how it draws power from Coinbase, and its rumored token drop — all of which come together to make Base a can’t-miss destination onchain. Let’s begin!

What Makes Base Special?

Base stands out from other L2 chains due to its deep integration with the Coinbase ecosystem and reputation as the consumer chain.

Base's integration with Coinbase puts the exchange's massive consumer base closer to the chain and provides a foundation for building a strong community of builders and users.

Ecosystem initiatives like Onchain Summer have helped drive attention to the developers and creators, making the chain an attractive place for user to gather. Base has continually demonstrated a commitment to creators and breeding an atmosphere of experimentation, which has yielded many unique activities onchain, whether it's trading AI songs with Crate, talking behind closed doors in FriendTech, or nuking the competition in WorldPVP.

Further, Coinbase has provided the chain with a wealth of tools for making onchain life more approachable, the most notable being their recent release of smart wallets, which simplifies the login process by abstracting away lengthy recovery phrases and allows dApps to pay gas fees on behalf of their users.

These innovations combine toward a supportive ecosystem that rewards builders trying new things, in turn keeping users engaged and making for a casual, consumer atmosphere — a rarity in the do-or-die arena of DeFi.

Can Coinbase Push Base to the Top?

The backing of Coinbase brings several key advantages that set Base up for success.

Coinbase's massive user base, strong brand recognition, and regulatory track record all contribute to making Base an attractive option for both users and builders. The exchange's experience in navigating the complex world of crypto also positions Base to receive favorable treatment from regulators and other key stakeholders.

Moreover, Coinbase's financial muscle enables it to support Base in various ways, such as providing grants to developers building on the chain or subsidizing gas fees to attract users.

Finally, Coinbase's broad market reach and partnerships with major institutions could help Base secure strategic alliances and integrate with a wide range of services, ultimately expanding its reach and use cases.

What About a Base Token?

Despite its rapid growth and success, Base is still under development.

The platform’s fraud-proof system is a work in progress, meaning that Base is not yet fully decentralized. However, the team is actively working towards decentralization.

Unlike other major L2s, Base currently doesn't have a native token and hasn't made any official announcements suggesting it will eventually have one. However, many still believe the chain will find a way to launch one. While this means there is no direct way to invest in the network's current success, the future possibility makes using the chain all the more attractive. Further, a more immediate incentive could come from Optimism’s next retroactive airdrop, given that the last one rewarded creators across the Superchain, which includes Base.

Until then, investing in tokens launched atop the L2 could provide a proxy avenue for exposure to the Base ecosystem.

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