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HomeNewsGiga Bullish on Base + Optimism (Part 1)

Giga Bullish on Base + Optimism (Part 1)

Because the article is probably a bit long, I will split it into 2 small articles to make it easier for everyone to read! The main content is still me sharing info as well as my insight about these 2 projects about the long term **Coinbase’s vision** Not long ago, Coinbase announced the launch of a new Layer 2 network for for his Ethereum with the name Base. This is a network designed to be low cost, secure and easy to develop Dapps to attract more users to the Crypto world. While Layer 2 is still one of the most interested and awaited keywords in 2023, what will be the opportunities and challenges for Base when it has to compete with many other big names in the market. First, the thing to note here is that Base is developed based on Optimism’s technology, ie Base is built based on OP Stack’s open source code. In short, the OP Stack is a solution that was born to guide the OP’s development roadmap to become a modular blockchain in the future, especially when the awaited update of Bedrock is delayed. By partnering with OP Labs and Optimism as well as becoming the 2nd core dev of OP Stack, Base’s vision and ambition is to create a powerful ecosystem that can interact with not only Layer 2 but also both Layer 1 systems and other Rollups. Thereby, becoming a gateway for billions of users to enter the crypto world through Base and combining with Optimism to build Superchain in the future **Base’s advantage** Appeared quite late and in the middle of a forest If both L1 and L2 ecosystems are jostling for users out there, does Base have a competitive advantage enough to become their counterpart? Yes, it’s Coinbase – one of the biggest CEX in the world at the moment, the potential to grow Base is huge * Coinbase has more than 110m full KYC users, appearing in more than 100 countries worldwide world with more than 4500 employees. The trading volume of the exchange has always been in the top since the collapse of FTX * More than 10m users are considered active with many buying and selling activities. Only about 50% want to gamble on DeFi, then “boom”, Base has 5m users. And just half of these use Coinbase Wallet, we have 2.5m new users for Coinbase Wallet * To imagine how big this number is, I have a small comparison: Metamask has can be said to be the largest wallet platform in the market at the moment, they make a profit through swap between $200k – $500k per day with about 4k – 5k daily active users in Bear market. $500k – $2m per day with about 6k – 7k daily active users in Bull market. * So, just 1% of the other 2.5m users can be several times higher on Metamask, the potential profit that Coinbase Wallet can bring will be huge, even comparable. with Metamask in the future. Remember Coinbase’s revenue in 2022 is $3.2b and in 2021 it’s $7.8b Another Bullcase for Base is USDC. In 2022, USDC has contributed significantly to Coinbase’s revenue growth. More specifically, thanks to the partnership with Coinbase, Circle has earned more than $300m in interest from Government Bonds amid rising interest rates. And perhaps about half of this was shared by Coinbase’s revenue in Q4. If USDC becomes the lifeline of Base in the future, it is clear that both users, Coinbase and Circle will benefit. Besides, if we look closely at what Coinbase has done in the past time, we can see that they are not just an exchange anymore, but have become an ecosystem with a full range of fields such as NFT, Wallet, NFT, Borrowing, LSDs,… and Base is the necessary piece to build bringing users on Coinbase into the world of Web3. This not only creates benefits for Coinbase in particular but also for the entire Crypto community in general. Base also inherits the security from Ethereum and the ambition to combine with Optimism to create a fast, stable and decentralized Superchain in the future. future. It is not difficult to realize that there will be many projects that will be ready to dive into this delicious piece of cake, especially when Base is compatible with EVM End of part 1, read on for part 2.




Source: Collector

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