Coinbase announced its intention to enhance storage of corporate and consumer USDC balances in Base, an Ethereum layer 2 solution incubated by Coinbase and built on the open source OP stack. This strategic move aims to leverage the lower fees and faster settlement times offered by Base without compromising the user experience of the Coinbase platform. Max Branzburg, Vice President and Head of Consumer Products at Coinbase, expressed enthusiasm for moving more operations on-chain and encouraged other companies to follow suit.
The decision was well-received, with Base contributor Jesse Pollak expressing approval and saying he was happy to support Coinbase’s transition to on-chain operations.
In parallel with these developments, Base saw a significant increase in its Total Value Locked (TVL), reaching over $1 billion. This significant milestone represents more than double the TVL recorded earlier this month, according to data from Defi Llama. In particular, the decentralized exchange Aerodrome accounts for the majority of Base TVL and has been showing notable growth since early February.
The number of transactions on Base soared, outpacing other bullish rollups, and Arbitrum also experienced notable growth. In contrast, daily trading volume on the OP mainnet grew more slowly.
Coinbase’s decision to utilize Base to store USDC balances is consistent with the broader trend of increasing adoption of layer 2 solutions in the Ethereum ecosystem. As Base continues to gain traction and demonstrate scalability and efficiency, we are poised to play a critical role in facilitating faster, more cost-effective transactions for Coinbase and our customers.
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