Nasdaq-listed centralized digital asset exchange Coinbase (COIN) on Thursday announced an Ethereum scaling product that will use Optimism’s Layer 2 network technology. The news has ignited a fire among cryptocurrencies in the optimism ecosystem.
Data from CoinGecko shows that VELO, the native token of optimism-based decentralized exchange Velodrome Finance, is up 21% in the last 24 hours. The token has more than doubled over the past seven days. Velodrome is the ninth largest decentralized exchange in the world, accounting for 2.5% of the total market volume.
Sonne Finance bullish lending protocol’s SONNE token is up 82%, taking its seven-day rally to over 300%.
OPX Finance’s governance and utility token, OPX, has surged 144%, while the perpetual protocol’s PERP token, the perpetual-focused decentralized exchange, has seen its market value increase by 42%. Other lesser-known names such as THALE, HND, RING and PICKLE have also posted double-digit gains over the past 24 hours.
Optimism’s OP token is up over 10% to hit a two-week high of $3.10, CoinDesk data shows.
Coinbase has launched the testnet version of its new Ethereum Layer 2 scaling product, Base, announcing that it will be interoperable with other blockchains like Solana, but will not have a native token.
“Base aims to be decentralized, permissionless, and open to anyone with a vision to create a standard, modular, rollup-agnostic superchain powered by optimism,” the exchange said. “We are joining Optimism as core developers of the open-source OP stack and are working to build a thriving community of other developers.”
Speculation on Crypto Twitter says Coinbase is using Optimism to create a know-your-customer-based decentralized finance (DeFi) portal that will open doors for institutional participation in democratized finance.
Coinbase’s foray into the world of Ethereum Layer 2 comes a year after the exchange launched a non-fungible token marketplace. According to data from Analytics Insight, Coinbase Ventures is one of the most active crypto venture capital firms with more than 240 investments.
Observers are therefore optimistic that Base will develop into a point of contact for decentralized applications.
“The collaboration seeks to upgrade Optimism mainnet, base and other L2s to an initial superchain,” tweeted pseudonymous analyst Route2FI. “The hope is that the superchain can flourish into a sprawling network that maximizes interoperability, shares decentralized protocols, and standardizes its core elements.”
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