Coinbase CEO Brian Armstrong has decided not to launch a native token for its layer-2 network, Base. This statement clarifies previous ambiguities and sets a definite course for the network’s development.
During an interview with Decrypt, Armstrong clarified that Coinbase is not introducing a Base network token. This announcement counters earlier speculations triggered by remarks from Coinbase’s Chief Legal Officer, Paul Grewal. While Grewal had not dismissed the possibility of a future token, Armstrong’s recent statement, corroborated by a Coinbase spokesperson, definitively closes the chapter on such prospects.
Base’s Trajectory and Integration Goals
Launched in August, Base has rapidly grown into a significant player among layer-2 networks, securing a position as the third-largest in terms of total value locked, with an impressive $500 million. Operating on the Ethereum Optimism stack, Base has attracted considerable user engagement, witnessing around a million wallet interactions soon after its launch.
Armstrong revealed a target to bring transaction times and costs down to under one second and one cent. To achieve this, Coinbase is enhancing Base and incorporating other rapid layer-1 solutions like Solana and Bitcoin’s Lightning Network. With just 7% of Coinbase transactions currently using layer-2 solutions, there is a concerted effort to escalate this figure significantly.
The push towards layer-2 networks is a pivotal transition for the crypto industry, akin to the internet’s evolution from dial-up to broadband. Armstrong acknowledged the potential of these networks to introduce innovative applications and improve user experience. He also advocated for eventual consolidation around key layer-2 platforms, ensuring efficiency within the crypto sphere.