Coinbase Builds Layer 2 on Optimism, Optimism Token Up 6.5%

• Coinbase is building its layer 2 blockchain, Base, using the Optimism protocol.
• Optimism token (OP) rose by 6.5% following the announcement from Coinbase.
• Base won’t have a native token unlike other layer 2 blockchains such as Polygon

Coinbase Building Layer 2 Network Using Optimism Protocol

Coinbase announced that it is building its layer 2 blockchain, called Base, using the Optimism protocol. This news caused optimism token (OP) to rise by 6.5%.

Base Won’t Have Native Token

Unlike other layer 2 blockchains such as Polygon (MATIC), Base will not feature a native token. The price of MATIC was little changed following the announcement.

First Phase of Base

The first phase of Base will be a test network, with decentralized exchanges, lending protocols and decentralized apps expected to perform well once the mainnet goes live.

Coinbase’s Foray Away From Exchange

This isn’t Coinbase’s first foray away from being a typical exchange; last year it opened a non-fungible token marketplace but volume has been low compared with competitors OpenSea and LooksRare according to data from Dune Analytics.

Conclusion

The news of Coinbase building its layer 2 blockchain on the Optimism platform has caused optimism for OP tokens and the project itself, increasing in value by 6.5%. While this won’t be Coinbase’s only venture away from being an exchange, it could prove to be one of their most successful projects yet due to their collaboration with Optimism and strong team behind them.