Base Protocol spiked over 100% after Coinbase launched the testnet of its L2 network.
Following Coinbase’s launch of Base, a new Ethereum Layer-2 blockchain, an unrelated cryptocurrency asset spiked tremendously.
The token, dubbed Base Protocol (BASE), has soared over 100% in the past 24 hours after Coinbase announced the rollout of the L2 network. At the time of writing, BASE was changing hands around $3.01, up 109% in the past 24 hours. Cryptocurrency investors embarked on an accumulation spree for the token after Coinbase launched Base testnet, as they believe the token is linked to the recently launched L2 network.
Despite Coinbase stating clearly that it has no plans to launch a token for the newly launched network, many crypto enthusiasts still believe Base Protocol is associated with the L2 blockchain.
For context, Base Protocol is an Ethereum-based token whose price is pegged to the market cap of all crypto assets at a ratio of 1:1 trillion. However, Base Protocol has no relationship with Coinbase’s L2 network. It is noteworthy that the Base Protocol token was launched in December 2020.
Coinbase Launches L2 Network Base
Meanwhile, the massive spike of Base Protocol comes hours after Coinbase said it had launched the public testnet for the L2 blockchain.
“Today, we’re excited to announce the testnet launch of Base, an Ethereum Layer 2 (L2) network offering a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps or ‘dApps’ on-chain,” said Coinbase.
Base’s launch marks Coinbase’s expansion into the developer aspect of the cryptocurrency industry. According to the announcement, the L2 network will offer developers cheap, convenient, and secure ways to create decentralized applications on-chain.
Coinbase noted that the ultimate goal of developing Base is to bring billions of users into the crypto space by allowing dApps creation to be easy, cheap, and safe to interact with. Per the announcement, Base will give users secure access to Ethereum L1 and L2 networks, and other L1 blockchains, including Solana.
“We encourage them to start on Base, but go everywhere: we see Base as a ‘bridge’ for users into the crypto economy. It’s an easy-to-use default on-chain experience with access to products on other chains,” Coinbase added.
A Coinbase spokesperson told TechCrunch that several crypto businesses, including Animoca Brands, Dune, Chainlink, etc., have already indicated interest in building on Base in the future. Base is currently in its Testnet, with no specific date for its rollout on Mainnet.