Coinbase Shares Seeing Resurgence Since Launch of Its Base L2 Network

American digital currency trading platform Coinbase Global Inc (NASDAQ: COIN) is seeing a bullish rejuvenation in its stock price as the sentiment surrounding its Base layer 2 (L2) networks is growing. COIN is trading at a price of $66.44, up 2.48% in the Pre-Market, soaring from the $64.83 it ended Tuesday’s trading session atop a 9.96% growth.

That Wall Street is all pumped about Coinbase is not surprising as the Wall Street crypto giant is on the verge of making history. This history is embodied in the fact that it will be the first publicly traded firm to create an L2 outfit dubbed Base as previously reported by Coinspeaker.

The digital currency ecosystem has been on a downward spree since November 2021 when prices of cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) soared to their respective All-Time Highs (ATHs). Coinbase has recorded a significant strain in both its revenue and share price within this period as its business has a very high correlation with the market.

At its peak, Coinbase shares were priced at $357, and it has recorded more than an 80% slump since that time till now. The tides appear to be turning in the favor of COIN shares in the short term as it has recorded more than a 6% upshoot since it revealed the imminent launch of Base.

The launch of Base will enhance the revenue generation conduit for the crypto exchange platform whose primary cash flow comes from the trading activities of its customers. The fee cut from Base as well as the robust developer environment it will create will give users will help reposition the trading platform right for future sustainability.

Coinbase Inc’s Base to Stir Advantages

For Coinbase, the launch of Base will position it in such a way that will give it a competitive advantage by a large margin. The trading platform said Base will open up a conduit for developers to build new solutions that will be backed by the security of the Ethereum blockchain.

“Base will serve as both a home for Coinbase’s onchain products and an open ecosystem,” the company stated. “We need to make it even easier for developers to build.”

According to the exchange, Base will make transactions cheaper and faster when compared to the Ethereum protocol. Many industry leaders are already lending support for Base with outfits like Dune Analytics, the DeFi protocol Aave, and Animoca Brands already pledging support for the protocol.

Coinbase built Base on top of the Optimism stack and it designed it to be highly functional even for other Wall Street firms that may be looking at building solutions in the Web 3.0 world. Base is designed as a compliant protocol and the exchange has confirmed it will not be launching a native token as it wants to avoid anything that will place it in the crosshairs of US regulators.