What Is Base? The Ethereum Layer-2 Network Launched by Coinbase

Base is Coinbase's Ethereum layer-2 network designed to bring millions of users into the cryptoeconomy. The platform offers a cost-effective blockchain infrastructure for decentralized applications.

TLDR

• Base represents an Ethereum layer-2 scaling solution developed by cryptocurrency exchange Coinbase.

• The platform seeks to integrate "billions of users into the cryptoeconomy."

• During September 2025, Coinbase disclosed it's "exploring" potential token deployment for Base.

Prominent American cryptocurrency exchange Coinbase expanded its blockchain presence through deploying its Ethereum layer-2 scaling network Base during 2023.

Initially positioned as "a 'bridge' for users into the cryptoeconomy," Base was engineered to accommodate Coinbase's current blockchain products while establishing an accessible ecosystem supporting millions of emerging decentralized applications.

Following deployment, Base has emerged among premier Ethereum layer-2 networks, capturing substantial blockchain culture and transaction activity.

Discover comprehensive information regarding Base through the following sections.

Network Architecture and Fundamentals

Base functions as an Ethereum layer-2 scaling network developed by American cryptocurrency exchange Coinbase during 2023. Constructed utilizing open-source standards alongside the OP Stack, Base implements optimistic rollups—technology aggregating transactions for collective processing, enabling reduced gas expenses.

Consequently, conducting transactions through Base provides you substantially reduced costs and accelerated processing versus Ethereum mainnet operations, while maintaining layer-1 blockchain security guarantees.

Strategic Motivations Behind Development

Coinbase developed Base addressing the fundamental challenge of integrating new participants and developers within cryptocurrency ecosystems, aspiring toward eventually incorporating "billions of users to the cryptoeconomy."

Achieving this objective required establishing mechanisms delivering safer, economical, and expedited applications alongside products for developers and users. Base's layer-2 infrastructure was engineered emphasizing open-source principles, decentralization, and cross-platform compatibility—utilizing transparent open-source programming, functioning as a "bridge instead of an island" connecting major cryptocurrency ecosystems, while preserving commitments toward eliminating superfluous intermediaries.

Token Economics and Native Assets

Distinguishing itself from numerous layer-2 networks, Base operates without native tokens, instead utilizing Ethereum for gas payments enabling network transactions.

Although cryptocurrency communities frequently speculated regarding potential chain-specific tokens, the exchange maintained—until recently—firm positions against Base token deployment plans.

"We're not planning to make any token for Base," stated company CEO Brian Armstrong during 2023 Decrypt interviews, maintaining this stance throughout two years—though the organization's Chief Legal Officer acknowledged it wasn't "something we've ruled out entirely."

September 2025 marked Base's messaging pivot, announcing they're "beginning to explore a network token" via tweet. Nevertheless, Coinbase emphasized maintaining "no definitive plans" for Base network token launches.

Despite absent native token incentives for chain builders currently, the network provides builders grants alongside funding opportunities supporting efforts attracting users and applications toward the layer-2 infrastructure.

Platform Capabilities and Ecosystem

Base accommodates numerous applications and protocols facilitating blockchain activities spanning gaming, social platforms, and DeFi, presenting you extensive activity possibilities.

Decentralized Finance Infrastructure

Hosting 617 DeFi protocols per DefiLlama data, Base contains exceeding $5.1 billion total-value-locked (TVL), representing capital secured within chain smart contracts.

Rankings feature decentralized lending protocol Morpho leading with $1.89 billion chain TVL.

Additional established DeFi participants including Uniswap and AAVE maintain substantial Coinbase L2 presence, while emerging protocols like Moonwell and Pendle secure over $100 million TVL individually.

Gaming Ecosystem Development

Base cultivates extensive gaming infrastructure, featuring gaming-focused layer-3 network B3, claiming 244 hosted games alongside over 7 million wallets. This ecosystem, developed by former Base team members, attracts prominent Web3 gaming publishers including Parallel Studios and Nifty Island.

Additional games including Frenpet, Aavegotchi, and Heroes of Mavia establish Base residence.

Consumer-Oriented Applications

Extending beyond gaming and DeFi, the layer-2 network hosts diverse consumer applications spanning community artwork through restaurant loyalty systems.

Notable examples connecting with Base include decentralized social media infrastructure Farcaster alongside its prominent Warpcast interface, delivering blockchain-powered alternatives challenging conventional social platforms like X or Facebook.

Base additionally hosts token deployment platforms including Flaunch, restaurant engagement system Blackbird, and collectible sticker ecosystem Sofamon among numerous alternatives.

Competitive Positioning Analysis

Coinbase's scaling infrastructure represents the cryptoeconomy's largest layer-2 network currently, maintaining approximately $1.6 billion additional TVL versus Arbitrum, the subsequent largest layer-2 network per DefiLlama metrics.

Performance extends beyond layer-2 blockchain financial metrics—comparing Base against all blockchains including layer-1 networks like Solana and Ethereum—it achieves #7 ranking for daily active addresses throughout the previous year per TokenTerminal data, approaching one million daily active addresses.

Furthermore, the chain secures fifth position among layer-2 networks regarding core developers, following Optimism, Arbitrum, Linea, and zkSync Era, according to TokenTerminal information.

Development Roadmap and Objectives

Base's fundamental mission consistently targets introducing billions of consumers toward blockchain technology, ultimately expanding cryptocurrency ecosystems beyond existing user demographics.

Within 2025 objectives, the network targets achieving 25 million users, 25,000 developers, and $100 billion platform assets—milestones characterized as "big, hairy, audacious goals."

Accomplishing these targets and beyond requires focusing on enhancing developer experiences through AI agent integration and additional innovations, emphasizing application distribution supporting its expanding product portfolio, and minimizing onboarding duration below 60 seconds through Smart Wallet development.