In a recent interview with Decrypt, Coinbase CEO Brian Armstrong addressed rumors of a token launch for the exchange’s layer-2 network, Base. This statement follows earlier suggestions from Coinbase’s Chief Legal Officer Paul Grewal, which hinted at the potential for a Base altcoin in the future. Here are the details…
No altcoin plans for Base
Armstrong underlined his satisfaction with the development of Base since the exchange’s launch in August, stating categorically that, contrary to previous indications, “We do not plan to make any tokens for Base.” It is noteworthy that Base has rapidly risen to become the third largest layer-2 network, has an impressive total value locked (TVL) of $500 million, and has included one million first wallets in its ecosystem. Armstrong emphasized the importance of Base’s integration with a variety of applications, expressing excitement among developers eager to interact with the layer-2 network.
Currently, 7% of Coinbase transactions use layer-2 solutions, including Base, and plans to increase this percentage significantly. Collaboration efforts with Blockchain ecosystems such as Solana continue to facilitate fast and cost-effective transactions. Emphasizing the importance of widespread adoption of Layer-2 solutions, Armstrong set ambitious performance targets, aiming for approximately 99% of transactions to occur in these secondary layers. The ultimate goal is to process transactions for less than a cent and within a second.
Layer-2 descriptions
Layer-2 networks built on top of existing Blockchains such as Ethereum offer faster transaction speeds and lower costs compared to their base layers. Among these networks, Base has gained rapid popularity within the crypto community. Armstrong outlined Coinbase’s vision for Base to be an inclusive network beyond its own borders, built on the Optimism stack in Ethereum and aiming for interoperability with the broader crypto community. Despite this vulnerability, full support from Coinbase is promised to ensure stability and trust in Base.
Expressing his surprise at the emergence of layer-2 networks from other crypto exchanges, Armstrong pointed out potential consolidation in the industry around one or two major layer-2 networks. The interview coincided with reports that competitors such as Kraken and OKX were exploring layer-2 solutions of their own, highlighting intensifying competition in the crypto exchange space and increasing emphasis on efficient transaction infrastructure.
There is a goal of Solana integration
Separately, Coinbase announced plans to integrate with Solana (SOL) as part of its goal to make transactions on its platform “under a second and a dime,” according to CEO Brian Armstrong. This strategic move includes integrating Lightning with Bitcoin and other fast layer-1 networks, and positioning layer-2 solutions by default on the Coinbase platform. Despite earlier speculation, Armstrong confirmed that there are “no plans” to issue a Base network token.
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