The Ethereum scaling network BASE developed by Coinbase is considering the introduction of its own token. According to the man behind Base, Jesse Pollak, the plans are still at an early stage and conversations are being held with supervisors about a possible issue.
Possibly native token on Ethereum
During the recent Basecamp event in the US state of Vermont, explained Pollak: “We are going to explore a network token.” However, he emphasized that the initiative is still early and that no expectations have to be raised about a rapid launch.
Pollak made it clear that a possible token will be built on the Ethereum (ETH) network. In addition, BASE wants to collaborate with regulators to ensure that the issue and distribution run according to the rules:
“As an American company, we are committed to working together with supervisors and legislators, and to do this in the right way.”
When Base was launched in 2023, Coinbase indicated that it had no plans to release a token. For the time being it is unclear whether a possible token will get a governance function or whether it can also be used within the infrastructure of the blockchain.
Growth and position in the L2 market
Base has experienced strong growth since the launch in 2023. The network now has a Total Value Locked (TVL) of $ 5 billion, of which 1.7 billion has been added this year. This is the total value of all assets in the network. This makes Base the biggest Layer-2 blockchain after arbitrum, according to figures from L2Beat.
What is a Layer-2 network?
This is an extra layer on top of a blockchain network (in this case Ethereum) that makes transactions faster and cheaper by bundling them and then recording them on Ethereum.
It is striking that Base has considerably more activity than competitors. The network processes seven times as much user operations per second (UOps) as an arbitrum and registered 328 million transactions for the past 30 days. For comparison: Arbitrum processed 77 million and Ethereum (ETH) less than 50 million in the same period.
While the largest Layer-2 token is currently Mantle (MNT) with a market capitalization of $ 5.3 billion, Base does not yet have its own currency. The possible introduction thereof could further change the dynamics in the market.
Source: https://newsbit.nl/coinbase-onderzoekt-eigen-cryptomunt-voor-populair-ethereum-netwerk/
