Nasdaq-listed centralized digital asset exchange Coinbase on Thursday launched Base, an ethereum scaling product that will leverage technology from layer 2 network Optimism. The news seems to have triggered the prices of cryptocurrencies in the Optimism ecosystem.
Data from Coingecko shows that VELO, the native token of Optimism-based Velodrome Finance decentralized exchange platform, is up 21% in the past 24 hours. It more than doubled on the weekly time frame. Velodrome is the ninth largest decentralized exchange in the world, accounting for 2.5% of the total market.
VELO price chart. Source: TradingView
SONN, the native token of Optimism Sonne Finance’s lending protocol, is up 82%, bringing its 7-day total return to over 340%.
SONN price chart. Source: TradingView
OPX Finance’s utility and governance token OPX jumped 144% on the day, while decentralized perpetual contract exchange Perpetual Protocol’s PERP token jumped 42% on the day. Other lesser-known names such as THALE, HND, RING and PICKLE also posted double-digit gains over the past 24 hours.
OPX price chart. Source: TradingView
Optimism’s OP token surged more than 10%, hitting a two-week high of $3.1.
OP price chart. Source: TradingView
Coinbase launched a testnet version of Base, announcing that it will be compatible with other chains such as Solana, but will not have a native token.
Speculation on Crypto Twitter is that Coinbase is creating a KYC-based DeFi gateway with Optimism, which will open the door for institutional participation in democratized finance.
A year after the exchange launched NFTs, Coinbase is venturing into the Ethereum Layer 2 world. According to Analytics Insight, Coinbase Ventures is one of the most active venture capital firms in the crypto space today, with more than 240 investments.
Observers are therefore optimistic that Base is evolving into a home for decentralized applications.
“The partnership seeks to upgrade Optimism’s mainnet, base, and other L2s to early hyperchains,” the analyst nicknamed Route2FI tweeted. “It is hoped that Superchain can develop into a massive network that maximizes interoperability, shares decentralized protocols, and standardizes its core principles.”
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According to CoinDesk