{"id":284691,"date":"2024-04-17T15:21:26","date_gmt":"2024-04-17T09:51:26","guid":{"rendered":"https:\/\/dripp.zone\/news\/coinbase-layer-2-network-base-brings-usd-26-million-profit-strong-outlook-ahead-crypto-news\/"},"modified":"2024-04-17T15:21:29","modified_gmt":"2024-04-17T09:51:29","slug":"coinbase-layer-2-network-base-brings-usd-26-million-profit-strong-outlook-ahead-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/coinbase-layer-2-network-base-brings-usd-26-million-profit-strong-outlook-ahead-crypto-news\/","title":{"rendered":"Coinbase Layer-2 Network Base Brings USD 26 Million Profit, Strong Outlook ahead – Crypto News"},"content":{"rendered":"

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Ever since its launch last year in July 2023, Coinbase\u2019s Layer-2 network Base has seen strong growth and acceptance in the decentralized finance (DeFi) market. Amid this development, Base has become an important contributor to the company\u2019s profits.<\/p>\n

Coinbase Base Contributes $26 Million In Profits<\/h3>\n

Coinbase Base, an Ethereum-based Layer-2 solution, has witnessed strong growth in transaction volumes and fees amid a large number of project listings happening on the platform this year in 2024. The demand for this Layer-2 network is so high that Base<\/a> also faced a situation of network congestion, a few weeks ago.<\/p>\n

However, this surge in the gas fee has led to strong earnings for Coinbase. As per the CoinShares report<\/a>, Coinbase would be taking 85% of the Base network profits while the remaining 15% will go to competitor Optimism.<\/p>\n

Amid this stellar growth, Base has eaten into the market share of its competitors like Arbitrum<\/a> and Optimism. Citing data from Dune Analytics, CoinShares reports that this uptick in Layer-2 Base network utility shall contribute to USD 26 million in net profit for Coinbase ever since its inception to now, April 15, 2024. It also provides Coinbase with a good diversification from its traditional brokerage business.<\/p>\n

Furthermore, Coinbase seeks to continuously innovate the Base platform and make it as economically viable as possible. One significant update that Coinbase plans to bring to the Layer-2 Base network includes the ability to store users\u2019 USDC balance<\/a> within the platform. This strategic decision allows the company to efficiently handle and safeguard customer funds, benefiting from reduced fees and faster settlement times.<\/p>\n

OKX Pitches A New Competition<\/h3>\n

On Monday, crypto exchange OKX announced the public mainnet launch of its Ethereum-based layer-2 scaling network, X Layer. This advancement positions OKX among the renowned blockchain platforms offering users faster and more cost-effective transactions compared to Ethereum\u2019s mainnet.<\/p>\n

X Layer is constructed using the Polygon CDK and is among the pioneering networks to utilize Polygon\u2019s AggLayer functionality.<\/p>\n

With the introduction of X Layer, OKX enters direct competition with Coinbase and its Layer-2 solution, Base. One notable distinction between Base and Layer X is the latter\u2019s incorporation of zero-knowledge (ZK) proofs.<\/p>\n

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills. <\/p>\n<\/p><\/div>\n

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