The blockchain landscape is evolving rapidly, and developers are constantly seeking environments that offer both scalability and broad user access. In this context, Base—an Ethereum Layer 2 (L2) launched by Coinbase—has emerged as a compelling platform for building decentralized applications (dApps). Built on the Optimism OP stack, Base combines robust infrastructure with unparalleled distribution potential. This article explores the foundational elements of Base, its strategic advantages, ecosystem growth, and long-term vision within the broader web3 economy.
The Challenge Facing Blockchain Developers
At their core, blockchain developers need two critical components:
- Scalable and developer-friendly infrastructure.
- Access to a large, engaged user base.
While blockchains like Ethereum provide security and decentralization, they face congestion during high demand, leading to expensive transaction fees. This limits accessibility for average users and hinders mass adoption of dApps. Additionally, unlike web2’s centralized app stores, crypto lacks a unified distribution channel—making user acquisition difficult for new projects.
👉 Discover how developers are overcoming these barriers with next-gen L2 solutions.
Introducing Base: A Scalable Ethereum L2
Launched publicly on August 9, 2023, Base is a secure, low-cost Layer 2 network built using the Optimism OP Stack. As part of the Ethereum ecosystem, it inherits Ethereum's security while significantly reducing transaction costs and improving speed.
For developers, Base offers an unmatched combination of features:
- Access to Coinbase’s 110 million verified users — a built-in audience for onboarding.
- Connection to over 108 million Ethereum wallets, enabling seamless interoperability.
- Familiar development environment using Solidity and Vyper smart contract languages.
- Alignment with Optimism’s technology stack, ensuring compatibility and shared innovation.
- Trust from Coinbase’s brand — the only publicly traded U.S.-based crypto exchange.
- Frictionless fiat-to-crypto onboarding, lowering entry barriers for new users.
- Developer tooling and support ecosystem via Coinbase’s vast network of partners and investors.
Despite not having a native token or direct grant programs (due to regulatory constraints as a public company), Base has quickly gained traction by leveraging Coinbase’s scale and reputation.
Who’s Building on Base?
Though Base is still in its early stages—just over three months old—it has already attracted a diverse range of applications, particularly in consumer-facing use cases.
Top Projects by Activity
When analyzing metrics such as gas fees, active users, and transaction volume, one trend stands out: consumer apps dominate Base’s ecosystem, rather than traditional DeFi protocols.
Friend.tech
This social platform allows creators to monetize their followings through exclusive content and engagement tokens. It has become the most widely used app on Base to date, demonstrating strong demand for social crypto experiences.
Blackbird
A restaurant loyalty app that uses NFTs to create membership tokens. Customers tap their phones via NFC readers at partner restaurants, earning onchain rewards. With backing from a16z and participation from around 80 eateries, Blackbird exemplifies real-world utility powered by blockchain. Its CEO, Ben Leventhal, co-founded Resy, bringing deep industry expertise.
Basepaint
A collaborative pixel art project where artists contribute daily to a shared canvas. At the end of each day, the artwork becomes an open-edition NFT minted for 24 hours. Artists receive a share of ETH proceeds—over 160 ETH (~$320k) distributed so far. With 140,000 transactions in 90 days, it ranks just outside the top 10.
These examples highlight how Base is fostering innovation beyond finance—tapping into social media, art, and retail.
👉 See how emerging dApps are reshaping digital interaction on scalable L2s.
Base in Coinbase’s Long-Term Strategy
Coinbase’s mission is clear: "to increase economic freedom through an open financial system." While historically known as a centralized exchange, the launch of Base signals a strategic pivot toward decentralized infrastructure.
By building Base on Ethereum, Coinbase is effectively pushing users toward self-custody and DeFi—where trading fees are lower and control rests with individuals. This may seem counterintuitive for a business reliant on trading revenue, but it aligns with a broader vision: becoming the foundational layer for web3.
Key strategic benefits for Coinbase include:
- Earning fees from every transaction on Base.
- Developing a “web3 app store” with a small revenue share model.
- Supporting DeFi and real-world asset tokenization through products like USDC and institutional custody services.
- Offering infrastructure-as-a-service (akin to AWS) for third-party developers.
- Leveraging Coinbase Ventures to fund promising startups on Base.
- Monetizing wallet data through referral partnerships—similar to web2 search engines.
- Enhancing brand credibility by aligning with Ethereum’s decentralized ethos.
Is Coinbase the Amazon of Web3?
There are striking parallels between Amazon’s evolution and Coinbase’s trajectory.
Amazon began as an online bookstore in 1994 and gradually expanded into retail, media, cloud computing (AWS), and more. Similarly:
- Coinbase started as a Bitcoin-only exchange in 2012.
- Expanded support to Ethereum and hundreds of other assets.
- Diversified revenue beyond trading (now only 42% of total revenue) into staking, USDC issuance, prime brokerage, derivatives, and venture investments.
Just as AWS became a powerhouse for web2 developers, Base could become the infrastructure backbone for web3—enabling startups to build consumer apps, financial tools, and enterprise solutions.
Coinbase already has:
- Over $130 billion in assets under custody.
- Partnerships with institutions like BlackRock.
- A wallet used by millions.
- Deep ties to leading VCs like a16z and Paradigm.
With these assets, Coinbase is uniquely positioned to bridge traditional finance (TradFi) with decentralized systems.
Financial Performance & Competitive Positioning
In its first 90 days, Base has demonstrated strong performance across key metrics:
- Revenue: Ranked #3 among L2s, behind Arbitrum and Optimism.
- Daily Transactions: ~623,000/day — outpacing both Arbitrum and Optimism.
- Transactions Per Second: 7.21 avg — competitive with top peers.
- Cost Per Transaction: Lower than Arbitrum and Optimism.
- Daily Active Users: ~75,000 — impressive given its short lifespan.
- Total Value Locked (TVL): $290M — relatively low due to focus on consumer apps vs DeFi.
- Core Developers: 22 — modest but growing.
Base pays 15% of its revenue to Optimism for using the OP Stack—a slight cost disadvantage—but gains value through shared alignment and ecosystem synergy.
Competitive Advantages of Base
- VC Network Access: Backed by top firms like a16z and Paradigm (co-founded by Coinbase’s Fred Ehrsam).
- Built-in Distribution: Direct access to Coinbase’s massive user base.
- Fiat Onboarding: Seamless conversion from USD to crypto via Coinbase.
- Institutional Experience: Over a decade of operating in regulated environments.
- Brand Trust: High security standards appeal to cautious users and developers.
- Operational Efficiency: Generating over $95k/day in revenue with a lean team.
The main drawback? No native token means fewer incentives like airdrops—potentially slowing early user growth compared to incentivized chains.
Future Outlook: App Chains and Institutional Adoption
Looking ahead, Base could evolve into a hub for specialized “app chains” serving distinct industries. With its partnership with BlackRock, it’s conceivable that Wall Street institutions launch private L2s on Base to trade tokenized real-world assets—unlocking trillions in value.
Additionally, expect upgrades enabling developers to deploy custom chains (similar to Arbitrum Orbit), further expanding Base’s utility.
FAQ
Q: Does Base have a native token?
A: No, Base does not currently have a native token. As part of Coinbase—a publicly traded company—it avoids token-based incentives due to regulatory considerations.
Q: How does Base reduce transaction costs?
A: Base is an Ethereum Layer 2 that batches transactions off-chain before settling them on Ethereum, drastically lowering gas fees while maintaining security.
Q: Can anyone build on Base?
A: Yes. Developers can deploy Ethereum-compatible dApps on Base using familiar tools like Solidity, MetaMask, and Hardhat.
Q: How is Base different from Arbitrum or Optimism?
A: While all three use the OP Stack, Base benefits from direct integration with Coinbase’s user base, brand trust, and fiat onramps—giving it unique distribution advantages.
Q: Is Base centralized?
A: While initially operated by Coinbase, Base is designed to become increasingly decentralized over time. It relies on Ethereum for finality and security.
Q: What types of apps are thriving on Base?
A: Consumer-focused dApps like social platforms (Friend.tech), loyalty programs (Blackbird), and creative communities (Basepaint) are leading adoption.
👉 Start building or exploring dApps on one of the fastest-growing Ethereum L2s today.
Base represents more than just another scaling solution—it's a bridge between mainstream users and the decentralized future. With Coinbase’s resources, network effects, and long-term vision, Base is well-positioned to play a central role in the next phase of the internet.