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Leading American crypto exchange Coinbase ventured deeper into the on-chain economy with the launch of its Ethereum layer-2 network Base in 2023.
Originally billed as "a 'bridge' for users into the cryptoeconomy," Base was designed to house Coinbase's existing on-chain products and provide an open ecosystem for millions of new decentralized apps.
Since its launch, Base has developed into one of the leading Ethereum layer-2 networks, representing a significant chunk of on-chain culture and activity.
What is Base?
Base is an Ethereum layer-2 network that was created by American crypto exchange Coinbase in 2023. Built on open-source standards, Base utilizes optimistic rollups, a technology that batches transactions together for processing to help users save on gas fees.
As a result, transacting on Base offers users significantly cheaper and faster transactions compared to those on the Ethereum mainnet, all while utilizing the security of the layer-1 blockchain.
Why did Coinbase launch Base?
Coinbase launched Base to help solve the critical issue of onboarding new users and developers to crypto, in the hope of one day bringing “billions of users to the cryptoeconomy.”
With that in mind, the company needed to find a way to provide developers and users with safer, cheaper, and faster applications and products. To do so, Base’s layer-2 blockchain was designed to be open source, decentralized, and interoperable—leveraging the transparency of open-source code, acting as a “bridge instead of an island,” to other major crypto ecosystems, and maintaining its commitment to cutting out unnecessary middlemen.
Does Base have a token?
Unlike many other layer-2 networks, Base does not have a native token and instead uses Ethereum as the gas token to facilitate transactions on the network.
While many crypto users have speculated that the chain could eventually get its own token, the exchange has—until recently—remained adamant that it has no plans to launch a Base token.
“We’re not planning to make any token for Base,” the company’s CEO Brian Armstrong told Decrypt in 2023, a line that the company stuck to for two years—though the firm's Chief Legal Officer let slip that it was “not something we’ve ruled out entirely.”
In September 2025, Base pivoted from its previous messaging, stating that it is "beginning to explore a network token" in a tweet. However, Coinbase reiterated that it has "no definitive plans" to launch a token for the Base network.
Though no native token rewards are currently provided to those building on the chain, the network does offer builders grants and funding opportunities for their efforts in bringing users and applications to the layer-2 network.
What can you do on Base?
Base is home to dozens of apps and protocols that support on-chain activities across gaming, social, and DeFi, offering users a wide range of potential activities.
DeFi
Base houses more than $3.78 billion in total-value-locked (TVL), or the amount of money held in smart contracts on the chain, according to data from DefiLlama.
The list is headed by decentralized lending platform Morpho, with $1.88 billion in TVL on the chain.
Other traditional DeFi players like Uniswap and AAVE have a large presence on Coinbase’s L2, with smaller protocols like Moonwell and Pendle holding more than $100 million in TVL as well.
Gaming
Base has a robust gaming ecosystem, highlighted by gaming-centric layer-3 network B3, which claims to host some 244 games and over 7 million wallets. The ecosystem, built by former members of the Base team, has attracted notable Web3 gaming publishers like Parallel Studios and Nifty Island.
Other games like Frenpet, Aavegotchi, and Heroes of Mavia also call Base home.
Consumer applications
Beyond games and DeFi, the layer-2 network is the host to an array of consumer applications ranging from community art to restaurant loyalty programs.
One of the leading examples with ties to Base is decentralized social media protocol Farcaster and its popular Warpcast client, which provide a blockchain-based alternative to popular social media sites like X or Facebook.
Base is also home to token launchpads like Flaunch, restaurant loyalty platform Blackbird, and collectible sticker platform Sofamon among hundreds of others.
Base’s unified stack
Originally launched as an OP Stack chain leveraging layer-2 network Optimism, in February 2026 Base announced that it was transitioning away to its own consolidated “base/base” stack, citing a need to ramp up its shipping cadence and reduce “cognitive overload” for developers.
Base’s plan to disconnect from Optimism severs a three-year dependency, which saw a portion of its sequencer revenue channeled to Optimism’s treasury under its licensing agreement. The move gives Base access to additional revenue, as well as affording it greater independence under a self-operated tech stack that’s optimized “directly for our use case.”
The project will remain a Stage 1 Decentralized Rollup, and will add an additional independent signer to the Base Security Council as part of the move, while it will continue to work with Optimism as a client of OP Enterprise: Mission-Critical Support.
How does Base compare to other blockchains?
Coinbase’s scaling network is the largest Ethereum layer-2 network in the cryptoeconomy today, hosting over $1.7 billion more in TVL than Arbitrum, the next largest layer-2 network according to DefiLlama.
But it doesn’t only rank well among layer-2 blockchains in terms of financial performance. When comparing Base to all other blockchains–including layer-1 networks like Solana and Ethereum–it ranks #9 in daily active addresses over the last year according to data from TokenTerminal, with just shy of a million active addresses daily.
Additionally, the chain ranks seventh among other layer-2 networks in core developers, trailing projects including Optimism, Arbitrum, Linea and zkSync Era, according to data from TokenTerminal.
What’s the future of Base?
Base’s overarching goal has always been to bring billions of consumers on-chain, ultimately expanding the crypto ecosystem beyond its current set of users.
To achieve these goals and beyond, the chain is focused on improving the developer experience by embracing AI agents and beyond, leaning into app distribution to help promote its growing suite of products, and reducing onboarding to less than 60 seconds as it works on its Smart Wallet.
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