The recently announced network of layer 2 by Coinbase named Base is being viewed by the community Ethereum to be on a bullish run. This has led to Base receiving a huge vote of confidence as well as a momentous time for the entire blockchain network.
The base has been taken under the protection of Ethereum and has been powered by the Optimism network of layer 2. In addition, Base has been intending on becoming the network required for DApps (decentralized applications) on the ETH blockchain. Furthermore, these layer 2 networks have been present in their testnet phase as reported by Brian Armstrong, CEO.
Coinbase Networks Works In Favour of ETH
Ryan S. Adams is a member of the cryptocurrency world and is the Bankless Show’s host. According to him, Ethereum has gained a very big confidence vote that might act as a catalyst for the crypto firms along with financial institutions. This may also increase the demand for ETH as a favorite settlement layer.
Moreover, Coinbase is known to have almost a million users who are verified. Coinbase has also collaborated with 245,000 firms across 100 nations from the very beginning in 2012. Their crypto exchange is positioned in 2nd place after Binance in relation to trading volume, according to the data of CoinGecko.
Cryptocurrency Market In Advantageous Position
Adams has mentioned that the number of native users of crypto will increase 10 times if Coinbase managed to shift 20% of their verified users towards Layer 2 in the next few years. He further commended Coinbase on their adopting an open source Base as well as their faith in this latest network of layer 2 that may usher additional demand for block space in ETH.
This decision of Coinbase to shift to Layer 2 is also seen by many as advantageous.