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Coinbase Ventures into Ethereum with Base: A New Layer-2 Powerhouse

In 2023, Coinbase launched Base, an Ethereum layer-2 network designed to facilitate user onboarding into the cryptoeconomy.

Base utilizes optimistic rollups to offer significantly cheaper and faster transactions compared to the Ethereum mainnet, while benefiting from its security.

The ultimate aim is to engage billions of users and developers by providing a more accessible and cost-effective blockchain ecosystem.

Unlike many competitors, Base operates without a native token, leveraging Ethereum for transaction fees, although discussions about a potential token have emerged recently.

As of September 2025, Coinbase signaled an exploration into developing a network token while emphasizing its commitment to community collaboration.

Base houses around $3.78 billion in total value locked (TVL), attracting major decentralized finance (DeFi) projects like Morpho, Uniswap, and AAVE.

In addition to DeFi, Base has cultivated a thriving gaming ecosystem and diverse consumer applications, exemplified by popular offerings such as the Farcaster social media protocol.

In February 2026, Base transitioned to its own tech stack to enhance operational independence and increase revenue opportunities.

Currently, Base leads Ethereum layer-2 networks in total value locked and ranks favorably across all blockchains in terms of daily active addresses.

With a focus on improving developer experiences, Base aims to streamline user onboarding and expand its array of products to further grow the crypto user base.