Coinbase’s layer-2 solution called Base, built on the Ethereum network, became accessible to developers in the month of July. The official mainnet launch is set to occur on Aug. 9. As the launch approaches, many individuals are unsure about how to capitalize on it. In this article, we will discuss strategies to effectively leverage the opportunities presented by this upcoming launch.
What is Coinbase’s Base?
As mentioned earlier, Base functions as an Ethereum layer-2 protocol, employing the Optimism technology stack. Its main goal is to ensure the security and scalability of the Ethereum network while substantially cutting costs. This strategic approach is intended to enhance the interoperability of the L2 protocol and contribute to the collaborative scaling efforts of the Ethereum ecosystem.
The Base ecosystem has successfully attracted numerous protocols, with more than 30 projects currently active on its Layer 2 network. Today, Uniswap, the leading decentralized exchange on the Ethereum blockchain in terms of trading volume, was seamlessly integrated into Coinbase’s Base network. This integration empowers users to carry out token swaps within the L2 network.
In addition, the Base network has now incorporated Chainlink’s price feeds. Through this, developers on the Base platform have access to reliable and industry-standard data feeds provided by Chainlink.
Furthermore, the team behind Base introduced the “Onchain Summer” program in collaboration with well-known brands like Coca-Cola, Opensea, and Atari. This initiative encompasses a series of events aimed at enabling creators and developers to craft art or develop applications on the Base platform.
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Base’s growing popularity
Given the widespread popularity of Coinbase, Base has attracted significant attention. The platform has managed to facilitate the bridging of over $100 million in value to its L2 network. Currently, the total value locked in the Base network stands at $135 million, an increase of 59%.
It’s important to highlight that even during the informal launch of Base, the platform generated a remarkable profit of $700,000 within a span of three days. This achievement has raised the community’s expectations significantly as they anticipate the official mainnet release.
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So how can investors capitalize on this L2 platform?
It’s important to understand that the network does not have its own token, making it unfeasible for investors to directly invest in the chain. According to cryptocurrency analyst Miles Deutscher, there are three methods for investors to capitalize on Coinbase’s Base.
The final approach involves investing in Coinbase stock, denoted as COIN. Nonetheless, Deutscher emphasized that it’s challenging to precisely foresee the exact advantage for COIN shareholders if Base achieves success. However, he noted that a robust network would certainly contribute positively to Coinbase’s fundamental business. Ahead of its launch later today, COIN was seen rising. At press time, the stock price of the firm was at $88.04, with a 2.42% daily rise.
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