Coinbase has made a significant move into the on-chain economy with its launch of Base, an Ethereum layer-2 network, in 2023. Described as a bridge for users into the cryptoeconomy, Base is designed to host Coinbase’s existing on-chain products while fostering an open ecosystem for a multitude of decentralized applications (dApps). Since its inception, Base has emerged as a leading Ethereum layer-2 network, contributing substantially to the on-chain culture and activity.
Base operates on open-source standards and utilizes optimistic rollups, a technology that enables batch processing of transactions. This innovation allows users to experience significantly reduced gas fees and faster transaction times compared to the Ethereum mainnet, all while ensuring the security provided by the underlying layer-1 blockchain.
The primary goal for launching Base is to tackle the challenge of onboarding new users and developers into the cryptocurrency space. Coinbase’s ambition is to eventually bring billions of people into the cryptoeconomy. To achieve this, Base has been built as an open-source, decentralized, and interoperable platform. It aims to eliminate unnecessary intermediaries, functioning as a bridge to other significant crypto ecosystems.
Unlike many other layer-2 networks, Base does not have a native token. Instead, it relies on Ethereum as the gas token for transactions. Speculations about a potential token for Base have circulated over the years, but Coinbase has historically maintained that it had no plans for such. However, in September 2025, the narrative shifted slightly when Coinbase announced it is “beginning to explore a network token,” while reiterating that there is “no definitive plan” for launching a token as of yet. The company has emphasized that it is still in the early phases of exploration concerning any potential governance structures or specifics.
Currently, Base supports numerous applications and protocols that encompass a wide range of activities, including gaming, social networking, and decentralized finance (DeFi). It is home to 617 DeFi protocols, which collectively hold over $5.1 billion in total value locked (TVL) in smart contracts on the chain. Among these protocols is the decentralized lending platform Morpho, with the highest TVL of $1.89 billion, alongside other popular DeFi platforms like Uniswap and AAVE.
The network also boasts a robust gaming ecosystem, featuring a dedicated layer-3 network, B3, which is engaged with over 244 games and around 7 million wallets. Notable Web3 gaming publishers, including Parallel Studios and Nifty Island, are part of this vibrant gaming landscape. Additionally, Base hosts consumer applications, from decentralized social media protocols to loyalty programs for restaurants.
In terms of performance, Base has outpaced its competitors, making it the largest layer-2 network currently available. With a total value locked that exceeds Arbitrum by nearly $1.6 billion, Base also ranks impressively among all blockchains. It places seventh in daily active addresses and fifth among layer-2 networks in terms of core developers.
Looking ahead, Base aims to continue its expansion, targeting 25 million users, 25,000 developers, and $100 billion in assets by 2025. These ambitious goals are designed to enhance the overall crypto ecosystem and integrate more users into the blockchain space. Coinbase plans to focus on improving the developer experience, utilizing AI agents, facilitating app distribution, and streamlining the onboarding process to under 60 seconds with its Smart Wallet initiative.
