Coinbase will start storing more customer USDC balances on its own Base network

Base’s activity increased significantly after the Dencun hard fork

27.03.2024 - 14:13

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3 min

What’s new? US crypto exchange Coinbase plans to store more corporate and customer balances in USDC stablecoins on its own Base blockchain. According to Max Branzburg, vice president of the exchange, this will allow customer funds to be managed and secured with lower fees and faster settlements, while not impacting the user experience.

Source: Twitter.com

What else is known? Base, launched on August 9 last year, is a Layer 2 (L2) network based on the Ethereum blockchain and uses the OP Stack architecture from the Optimism blockchain. It is designed to create decentralized applications (DApps) and aims to bring a billion new users into the crypto economy. Base is open source and gives DApps developers access to Coinbase products, users, and tools.

Following the Ethereum mainnet hard fork called Dencun, which reduced transaction fees on L2 networks by 60-90%, the daily number of transfers on the Base network jumped by 380% to a new record above 2,1 million.

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Base ranks third among all Ethereum-based L2 networks in terms of total value locked (TVL) at $2,91 billion, with a market share of 7,32%. Base’s TVL started growing sharply on March 20, since then the figure has increased by 104%.

USDC is the second largest stablecoin in the crypto market with a capitalization of $32 billion. The coin was launched by Circle in partnership with Coinbase in September 2018.

Earlier, Coinbase diversified the Ethereum execution clients it uses to reduce network centralization, the risks of which industry experts have warned about. Now, about 50% of Coinbase Cloud validators use the Nethermind client in addition to Geth.

The exchange also announced the launch of DOGE, LTC, and BCH futures.

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