• Coinbase recently launched Base, a layer 2 network built using Optimism’s OP Stack.
• Following launch, the BASE token of Base Protocol surged 250%, before correcting.
• The surge was driven by crypto investors looking to make profits based on the trending topic.
Coinbase Launches Layer 2 Network
Coinbase (COIN) has recently announced the launch of its own blockchain-based layer 2 network – Base, which is built using Optimism’s OP Stack and offers easy and secure access to Ethereum, Optimism, Solana, and other ecosystems. This move has helped bring mainstream crypto adoption one step closer.
Base Token Jumps After Launch
Following the announcement of Coinbase’s Base, BASE tokens of Base Protocol experienced a surge in their prices that rose as much as 250%. Prices subsequently corrected amid heavy profit taking with BASE dropping overnight to trade just over $2 in Asian morning hours on Friday. Trading volumes also increased from $46,000 per day to over $566,000 at the peak price and further up to $1.1 million at writing time on Friday. The tokens are traded at both cryptocurrency exchange Gate and decentralized exchange PlasmaSwap.
Base Protocol Model
The underlying model of Base Protocol is relatively new; it enables an application developer or user to stake tokens for resources like storage and computing power needed for running smart contracts or applications on platforms like Ethereum or other blockchains built using OP Stack technology. All staked tokens are pooled into what’s known as a “stake pool” that can be used by developers without having them pay any additional fees for usage rights or access.
Profiting From Crypto Trends
It is no secret that crypto investors often look for opportunities to make gains from trends related to popular topics in order acquire quick profits – even if such moves may not be rational from an equity investor’s perspective. Such behavior was also seen in this case when BASE token saw massive spike after Coinbase’s launch announcement despite there being no correlation between them whatsoever.
Conclusion
Despite the correction over the past 24 hours following its massive jump earlier due to Coinbase news, BASE token still remains one of the most interesting projects given its recent developments and potential use cases associated with it amidst a growing demand for blockchain-based solutions among businesses worldwide
