Coinbase’s Ethereum Layer 2 solution, BASE, has been a focal point in the crypto community, particularly since its mainnet launch on August 9. In a recent interview, Paul Grewal, Coinbase’s Chief Legal Officer, shed light on several key aspects of the protocol, emphasizing that the company has not entirely ruled out the idea of issuing BASE tokens in the future.
Grewal explained that the primary focus of BASE’s launch was technological adoption rather than tokenization. The aim was to create a platform that would facilitate the development of applications capable of attracting a new wave of users to the crypto ecosystem. Tokenization, according to Grewal, took a backseat as the company is more concerned with other issues, notably regulatory clarity. He cited, “Currently, Coinbase is not paying much attention to the economics and tokenization of the protocol. There are other pressing concerns for the exchange like regulatory clarity”.
Grewal was candid about the challenges posed by the current regulatory environment. He highlighted that the Securities & Exchange Commission’s (SEC) existing stance on cryptocurrencies has been a significant barrier to innovation. This lack of regulatory clarity, Grewal noted, is a major hurdle for protocols like BASE to achieve full functionality, including the potential for tokenization. In light of this, Coinbase has initiated a movement called “Stand with Crypto,” aimed at gathering support for clearer crypto regulations.
Last week, blockchain analytics firm IntoTheBlock reported a surge in BASE’s on-chain activity. The network’s daily transactions skyrocketed from an initial 7-day average of 702,000 to a staggering 1.88 million. The average transaction size has also been decreasing, indicating a trend toward increased retail adoption and smart contract interactions.
The 30-day average active addresses ratio for BASE was reported to be an impressive 64.50%, significantly outperforming other Layer 2 solutions like Arbitrum and Optimism. This metric has piqued the interest of both investors and crypto enthusiasts, who are now keenly observing BASE’s potential impact on the blockchain landscape.
