- Coinbase launches Layer 2 ‘Base’ an Ethereum scaling solution with lower costs.
- Base calls attention to many VC-backed projects and offers high investment potential.
- Coinbase stock (COIN) and upcoming Ethereum upgrade (EIP-4844) add to Base’s impact.
A crypto analyst and DeFi enthusiast, Miles Deutscher, takes a moment to educate the online crypto community about Base. In detail, he makes a detailed post walking readers through what Coinbase’ layer (L2) solution Base can offer them.
He begins by explaining how Coinbase recently had its much-anticipated Layer 2 scaling solution ‘Base’ make its debut. This occasion marked a significant milestone in the crypto space this year. The launch is expected to introduce numerous new avenues for growth and investment within the crypto market.
To elaborate, Deutscher says Base is built on the Optimism stack within the Ethereum Layer 2 ecosystem. It aims to provide users with the security and scalability synonymous with Ethereum while significantly reducing transaction costs.
Coinbase describes Base as a bridge for the next billion users to enter the web3 world. Thus, Base operates under four core principles: being secured by Ethereum, empowered by Coinbase, cost-efficient, and open source.
By leveraging the Optimism Stack, Base’s L2 stack, aspires to enhance interoperability within the L2 ecosystem, promoting joint scaling for Ethereum. The strategic approach of centralized entities launching decentralized chains is gaining traction in the crypto space. For Coinbase, Base is a well-calculated move backed by years of experience.
To highlight, Deutscher says many prominent protocols have already launched on Base. Presently, over 30 projects are live. Coinbase’s financial strength, with more than $5 billion in cash, positions it to invest extensively in ecosystem development. This robust backing is expected to attract more projects to the Base ecosystem.
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Additionally, Deutscher draws light to investor opportunities. He says that even though Base doesn’t have its own token, investors can explore opportunities through on-chain incentives and by investing in the protocols built on Base.
Specifically, Deutscher says airdrop and incentive campaigns are anticipated to provide potential gains. To add on, he says investing in protocols leads to early market share gains and could also be lucrative.
Lastly, he talks about Coinbase Stock (COIN) and EIP-4844. In particular, he says Investors looking to participate indirectly can consider investing in Coinbase stock (COIN). After all, a successful Base launch could positively impact Coinbase’s core business, he says.
Notably, the Base launch coincides with Ethereum’s Layer 2 upgrade, EIP-4844, set to reduce gas fees significantly, making L2s more appealing to retail users. In conclusion, Deutscher believes Coinbase’s Base launch is set to reshape the crypto landscape. In fact, he says it is inevitable for Base to attract significant activity due to its unique positioning and financial backing which will foster 0further innovation in the DeFi space.
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