On August 3, the Ethereum bridge of the BASE network was announced by the BASE network. In the three days since then, the bridge has received significant attention. Investors are actively using the network, especially considering the possibility of an airdrop, in anticipation of the public launch scheduled for Wednesday. Coinbase aims to diversify its revenue with its layer2 solution.
According to L2beat, $111 million worth of crypto assets were transferred to the BASE network through the bridge launched on August 3. Coinbase, which announced the launch of its own Layer 2 to scale the Ethereum blockchain in February, announced the upcoming launch in its statement on August 3.
The release of an official bridge provides users with a way to transfer their tokens between the BASE network and Ethereum. The optimistic rollup-based Layer 2 is still in its early days, and the fraud-proof system is still being developed. Fraud proofs allow users to challenge the validity of transactions or state updates on the blockchain. If someone submits an invalid transaction or state update, others can provide evidence that it is fraudulent.
The launch of Base is part of Coinbase’s “Onchain Summer” initiative, where the crypto exchange collaborates with a series of brands, including Coca-Cola and OpenSea, for on-chain events.
The crypto giant has taken various measures to cope with the challenging conditions of the bear market. One of the initial steps was reducing its workforce, following the footsteps of other major companies due to the expected recession by the end of the year.
The Base main network for developers was launched on July 13 and initially made accessible to developers. However, before the official launch, several users connected their assets to the network using a portal proxy contract and other unofficial bridges to trade new memecoins. This led to an increase in activities on the network.
It also resulted in an increase in profits generated by the Ethereum scaling solution. The profit from Base reached approximately $13,000 on July 29 and reached $430,000 by the end of the month.
Coinbase referred to Base as an initiative in its second-quarter earnings letter to shareholders, indicating the company’s goal of expanding its business beyond trading.