Coinbase’s groundbreaking L2 Base has quickly become one of the most prominent narratives in the on-chain space this cycle, solidifying its position as the most innovative Ethereum L2.
The rise and continued growth of Base has increasingly become a hot topic in investment circles.
Launched in July 2023 and built on the OP Stack, Base allows for cheaper and faster Ethereum transactions, which is a key feature driving its success. Since its inception, Base has developed a vibrant ecosystem filled with DeFi, NFT, and consumer-friendly applications, putting it at the forefront of all on-chain trends. It is partnering with Stripe to launch a stablecoin service, positioning itself as the hub for Layer 3 solutions, and has been the center of liquidity rotation, constantly sparking “Base Season” calls. It has even surpassed Optimism in on-chain TVL value!
In this article, we will explore what makes Base stand out from other L2s, how it draws strength from Coinbase, and the rumored token airdrop – all of which make Base a star not to be missed on-chain. Let’s get started!
What makes Base so special?
Base stands out from other L2 chains with its deep integration into the Coinbase ecosystem and reputation in the consumer chain.
The integration with Coinbase brings the exchange’s large consumer base closer to the on-chain world and provides a foundation for building a strong community of builders and users.
Initiatives like Onchain Summer help attract the attention of developers and creators, making the chain a gathering place for users. Base has consistently shown commitment to creators and fostered an experimental atmosphere, resulting in many unique activities on-chain, whether it’s closed-door conversations in FriendTech or defeating competitors in WorldPVP.
Furthermore, Coinbase provides blockchain with rich tools that make on-chain life more accessible, with the most notable being their recently launched smart wallet, which simplifies the login process by abstracting lengthy recovery phrases and allows dApps to pay gas fees on behalf of users.
These innovations combine to form a supportive ecosystem that rewards developers for trying new things, maintains user engagement, and fosters a casual consumer atmosphere – something rare in the life-or-death realm of DeFi.
Can Coinbase propel Base to the peak?
Coinbase’s support brings several key advantages that lay the foundation for Base’s success.
Trust:
As one of the most recognized and trusted brands in the industry, Coinbase provides credibility to the chain, assuring potential users of its integrity. This is crucial not only for attracting Coinbase’s 110 million users, providing them with a friendly and secure on-chain adventure, but also enables Base to establish important partnerships, such as the recent collaboration with Stripe.
Partnerships:
Base’s collaboration with financial services giants will have a dual effect, turning L2 into a payment superhighway that could compete with Solana, which has benefited from a large volume of stablecoin transactions this cycle and signals to other Web2 companies that Base is a reliable place for payments. With a mature global presence, Coinbase provides ongoing financial support for Base’s continuous innovation and offers various services to their community such as cloud access, institutional gateways, and an integrated developer platform.
Marketing:
Their fund is also a powerful marketing machine, bringing Base and the entire industry closer to the public with the backing of a company that regularly airs television programs.
Political power:
Finally, no company has actively developed relationships with regulatory bodies like Coinbase, supporting clear and effective regulation. From funding initiatives like “Support Crypto” to regular meetings with senators and congressmen, the exchange continues to be an advocate for the industry. Despite their own current legal challenges, the reputation they gain from this behavior can serve as a fortress when Base must navigate legal complexities. Additionally, it means the blockchain will be even more secure and compliant, providing an extra layer of protection in case of issues.
In summary, Coinbase’s collaboration with Base not only provides credibility and financial support but also enhances its potential in major partnerships, regulatory support, and broad market coverage, making it a powerful player on-chain.
What about the Base token?
While Base has grown rapidly and achieved success, it is still in the development stage.
The platform’s anti-fraud system is still under development, meaning Base is not fully decentralized yet. However, the team is actively working towards decentralization.
Unlike other major L2s, Base currently does not have a native token and has not made any official announcements indicating it will eventually have one. However, many still believe the blockchain will find a way to introduce a token. Additionally, considering the last creator reward on a superchain, including Base, the next retroactive airdrop by Optimism could bring more direct incentives.
Until then, investing in tokens launched on L2s can serve as a proxy for exposure to the Base ecosystem.
Base in action
With its integration with Coinbase, active developer and user ecosystem, and recent important partnership with Stripe, Base has grown into a significant on-chain participant in just a year.
Coinbase’s support not only provides Base with crucial credibility, financial strength, and regulatory support for its growth and stability but also enables it to run programs like Onchain Summer, rewarding on-chain activity and experimentation, ensuring there’s always something working on the network.
It seems not enough, as the potential for Coinbase to launch future tokens adds to the motivation to operate on Base, with experiences being simplified thanks to features like the smart wallet.
With Base’s expansion and innovation, its user-centric approach, advanced technology, strategic partnerships, and Coinbase’s support, it has become one of the leading on-chain pioneers.
