The Rise of Base: Coinbase’s Base Soars to 18% Market Share, Second Only to Arbitrum in Layer-2 Networks
The U.S. cryptocurrency exchange Coinbase’s version of Base, one of the quickly expanding ranks of layer-2 blockchains built atop Ethereum, hardly stands out as a technological trailblazer. Code taken from another team was used to build and launch the complete project last year. Because of this, Base’s quick rise to the No. 2 position on the important industry scoreboard L2Beat—with an 18% market share of 74 active layer-2 networks—is all the more impressive. Top-ranked Arbitrum’s Arbitrum One leads with a 40% share, but Base has quickly overtaken more established rival projects from organizations that have worked hard to build a reputation for cutting-edge development, such as Starknet, Polygon, and even Optimism.
Independent blockchain data attests to the Base’s expansion. In recent months, the network has been accelerating while other layer 2s have been facing a dropoff, according to a new chart from on-chain analytics source Token Terminal. A cursory review of Coinbase‘s most recent quarterly report, which was submitted to the U.S. Securities and Exchange Commission, reveals that the cryptocurrency exchange invested more than $165 million in sales and marketing in the three months that concluded on June 30.
Base’s Rise: How Coinbase’s Marketing and Fundraising Outpace Layer-2 Rivals?
More quickly and affordably than the Ethereum basic blockchain, these layer-2 networks are made to carry out transactions. Layer 2s, also known as rollups, are becoming an essential part of the larger Ethereum ecosystem’s future plan for expanding into a digitally rail-based world where more—possibly even most—of finance occurs.
However, like with other industries, the competition for blockchain dominance ultimately comes down to marketing acumen and having a sizable reserve of funds to spend on luring in new clients, rather than simply having the greatest technology. Additionally, Coinbase has supported Base’s expansion with its own marketing initiatives and fundraising occasions, such as the just finished “Onchain Summer.” Over 2 million unique wallets participated in the three-month Onchain Summer event, the business announced in a news statement on Monday, earning creators over $5 million in mint revenue.
The results really blew us away. The 2.2 million unique wallets participating was about 8x what we saw last year, and more than double our internal expectations.
a Coinbase spokesperson
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