Layer 2 Base is gearing up to experience a surge in network activity with the introduction of Coinbase’s cbBTC, a new wrapped Bitcoin offering. Following Coinbase’s announcement regarding the availability of cbBTC on Base, Bitcoin holders on the layer 2 network are presented with a multitude of opportunities. This development comes at a significant juncture for the network, as it has surpassed both Arbitrum and Ethereum in terms of daily transactions.
The launch of cbBTC on Base signifies a significant step towards enhanced traction for the network. The wrapped BTC token will be backed 1:1 by Bitcoin held by Coinbase, enhancing the economic freedom and possibilities for BTC holders. With the introduction of cbBTC, Base is anticipated to witness increased liquidity and participation, particularly within the decentralized finance (DeFi) domain on the layer 2 network.
Moreover, various DeFi protocols and lending platforms, including Aave, Compound, Morpho, Moonwell, Spark, Curve, and Aerodome, are set to support the cbBTC token. This support is expected to attract Bitcoin holders to Base as they explore and take advantage of the diverse offerings provided by these platforms.
Base’s performance in comparison to Arbitrum and Optimism has been robust, with the network consistently outperforming them in terms of transactions and new user adoption. Weekly data from Dune Analytics demonstrates Base’s dominance in transaction volume and new user acquisition, positioning it as a leading player in the layer 2 ecosystem. Additionally, the network’s expansion is indicative of its growing prominence within the Ethereum scaling landscape.
The introduction of cbBTC on Base marks a pivotal moment for the network, propelling it to the forefront of the layer 2 race and solidifying its position as a competitive player in the evolving blockchain ecosystem.