Coinbase's Base network becomes the third-largest layer-2, exceeding $500 million in total value locked.
Coinbase CEO Brian Armstrong stated in an exclusive interview with Decrypt that there are no plans to launch a token for its layer-2 network, Base. This declaration seemed to contradict an earlier statement by Coinbase Chief Legal Officer Paul Grewal, who in September mentioned the viability of a token in the future. However, a Coinbase spokesperson has since confirmed that there are currently "no plans" to issue a token for the Base network.
Armstrong expressed satisfaction with Base's progress since its August launch, highlighting its rapid ascent to the third-largest layer-2 network in terms of total value locked (TVL), boasting around $500 million in TVL. Emphasizing the focus on integration with various applications, Armstrong stressed the collaborative aspect, aiming to make Base a broader industry entity rather than exclusive to Coinbase. Base is built on the Optimism stack on Ethereum, promoting interoperability within the crypto community.
As part of an internal stretch goal, Armstrong outlined Coinbase's ambition to facilitate transactions on its platform "under one second and one cent." This involves enhancing Base and making layer-2 the default on the platform. The company aims to increase layer-2 transactions significantly, moving towards 99% of transactions to meet performance goals.
Armstrong compared the shift to layer-2 networks to "the internet moving from dialup to broadband," stressing its significance in bringing new applications online. Despite acknowledging other exchanges exploring layer-2 networks, he questioned the necessity for each application to have its own layer-2 and suggested industry consolidation around one or two layer-2 networks.
