Expect crypto traders to jump on anything with a very remote relation to a trending topic to turn profits. BASE Protocol’s BASE tokens saw a gigantic rally of over 300%, then corrected in the last 24 hours following the news that crypto exchange Coinbase is launching its Ethereum Layer 2 network, Base. The company clarified it has no plans to release a token for Base.
A New Home For Coinbase’s On-Chain Products
Coinbase has officially joined the Ethereum Layer-2 rat race.
The San Francisco-based digital asset exchange announced Thursday the launch of a testnet version of its Ethereum scaling product, Base. Per the official announcement, Base is intended as a “home for Coinbase’s on-chain products” and — it hopes — an open ecosystem for crypto developers.
Built in collaboration with layer 2 network Optimism on Optimism’s Massachusetts Institute of Technology-licensed OP Stack, the newly-announced protocol aims to make transactions faster and cheaper.
Notably, Base will not be limited to Ethereum; it will also provide secure and seamless access to other layer-2 solutions, such as Optimism or Arbitrum, as well as other layer-1 blockchains like Solana and Avalanche.
Base will start off centralized, but Coinbase plans to fully decentralize the chain over time. The Nasdaq-listed exchange was also keen to note that it has no plans to issue a new network token.
To that end, Coinbase will allow developers to directly incorporate their product with Base and provide fiat onramps — targeting an estimated 110 million verified users and $80 billion in assets on the platform in the Coinbase ecosystem.
The announcement by Coinbase seems to have lit a fire under Base Protocol (BASE), which surged from around $1.9 to a local high of over $7.05 on Thursday — an increase of over 300%. It should be noted that BASE has nothing to do with Coinbase’s new project. The on-fire token has since retraced to $1.59 as of press time.