More Than $100 Million Transferred to Coinbase’s Base Network
Coinbase’s Base, a Layer 2 scaling solution, has experienced an influx of over $100 million in crypto assets, according to data analytics firm L2beat. The transfer coincided with Coinbase’s announcement of the imminent expansion of its mainnet access, aligning with the launch of a bridge to the Ethereum network.
Bridge to Ethereum: A Gateway for Users
The official bridge represents a significant step forward in facilitating user movement of tokens between the Base network and Ethereum. Although Coinbase’s Layer 2 scaling solution, based on optimistic rollup technology, is still in its nascent stage, the development of its fraud-proof system is in progress. The system allows blockchain users to contest the legitimacy of transactions or state updates. A challenged transaction or state update, if proven to be false, can be invalidated by providing evidence of fraudulent activity.
“Onchain Summer”: Coinbase’s Strategic Collaboration
Coinbase’s “Onchain Summer” initiative, as part of the Base roll out, is set to host a series of on-chain events involving several major brands, such as Coca-Cola and OpenSea. These collaborations signify Coinbase’s commitment to fostering growth in the crypto exchange landscape.
Surge in Activity Preceding Official Launch
The exclusive developer-oriented mainnet of Base, which went live on July 13, saw a spike in user activity leading up to the official launch. An influx of assets was bridged to the network via portal proxy contracts and other unofficial means, paving the way for the trading of new memecoins and a resultant increase in network activity.
Memecoins, Profits, and the Ethereum Scaling Solution
The explosion in activity due to the memecoin trading also triggered a significant rise in profits generated by the Ethereum scaling solution. Profits swelled from roughly $13,000 on July 29 to an impressive over $430,000 on July 30.
Base’s Role in Coinbase’s Expansion Goals
In their second quarter earnings communication to shareholders, Coinbase highlighted Base as a symbol of the firm’s growth ambitions beyond trading. “Base is an investment in blockchain infrastructure which we expect will drive down transaction costs and increase transaction speed – key attributes we believe will unlock new use cases over time,” the letter stated.
