Coinbase’s groundbreaking L2 Base has quickly become one of the most prominent narratives on-chain this cycle, solidifying its position as the most innovative platform on Ethereum.
Base’s rise and continued development have increasingly become a hot topic in investment circles.
Launched in July 2023, Base is built on the OP Stack and 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 stablecoin services, becoming the center for launching Layer 3 solutions, and has been the hub for liquidity rotation, constantly sparking the “Base Season” frenzy. It has even surpassed Optimism in on-chain TVL value!
In this article, we will explore what sets Base apart from other L2 solutions, how it draws strength from Coinbase, and the rumored token airdrop that makes Base a must-watch on-chain star. Let’s dive in!
What makes Base so special?
Base stands out among 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 massive consumer base closer to the on-chain world and provides a foundation for building a strong community of builders and users.
Ecosystem initiatives like Onchain Summer have helped attract the attention of developers and creators, making the chain a gathering place for users. Base has shown a commitment to creators and fostered an experimental atmosphere, resulting in many unique events on-chain, whether it’s closed-door discussions in FriendTech or defeating competitors in WorldPVP.
Furthermore, Coinbase has provided blockchain-friendly tools that make on-chain life more accessible, with their recently released smart wallet being the most notable. The wallet 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, keeping users engaged, and fostering a casual consumer atmosphere – something rare in the life-or-death realm of DeFi.
Can Coinbase propel Base to new heights?
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 that it will operate with 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 for enabling Base to establish significant partnerships, such as the recent collaboration with Stripe.
Partnerships:
Base’s collaboration with financial service giants will have a dual effect, turning L2 into a payment superhighway that could compete with Solana, which has benefited from a high volume of stablecoin transactions this cycle and signals to other Web2 companies that Base is a reliable place for payments. With a mature global business, Coinbase provides the financial strength for continued innovation, offering various services to their community, such as cloud access, institutional gateways, and an integrated developer platform.
Marketing:
Their foundation is also a powerful marketing machine, bringing Base and the entire industry closer to the public with support from a company that regularly airs television shows.
Political power:
Lastly, no other company has actively developed relationships with regulatory bodies like Coinbase, advocating for clear and effective regulation. From funding initiatives like “Supporting Cryptocurrencies” to regular meetings with senators and congressmen, the exchange continues to represent the industry. While they are currently facing their own legal challenges, the reputation they gain from these actions can serve as a fortress for Base when dealing with legal complexities. Additionally, this means the blockchain will be more secure and compliant, providing an additional layer of protection in case of issues.
In summary, Coinbase’s collaboration with Base provides not only credibility and financial support but also enhances its potential in major partnerships, regulatory support, and broad market coverage, making it a powerful participant on-chain.
What about the Base token?
Despite Base’s rapid development and success, it is still in its early stages.
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 L2 solutions, Base currently does not have a native token and has not made any official announcements indicating that it will eventually have one. However, many still believe that the blockchain will find a way to introduce a token. Additionally, considering the recent rewards for the last creator on superchains, including Base, the next retrospective airdrop from Optimism could bring more direct incentives.
Until then, investing in tokens launched on top of L2 can serve as a proxy for exposure to the Base ecosystem.
Base’s Case
With its integration with Coinbase, active developer and user ecosystem, and recent significant partnership with Stripe, Base has grown into a prominent 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 initiatives like Onchain Summer, rewarding on-chain activity and experimentation to ensure that something is always working on the network.
It seems that this is not enough, as the potential launch of future tokens by Coinbase further incentivizes operations on Base, with experiences being increasingly simplified through features like smart wallets.
With Base’s expansion and innovation, user-centric approach, advanced technology, strategic partnerships, and Coinbase’s support, it has become one of the leading on-chain pioneers.
