Distinguishing Between the Base Network and “BASE Coin”
In the cryptocurrency market, it is important to make a clear distinction when referring to “BASE Coin.”Currently, market attention is primarily focused on Base, an Ethereum Layer 2 blockchain network launched by Coinbase, a leading U.S. cryptocurrency exchange. It is important to note that the Base network itself does not issue a native token; gas fees for transactions on the network are paid in Ethereum (ETH).
However, there is indeed a separate cryptocurrency token called “Base Protocol (BASE),” which is designed to reflect the overall performance of the entire cryptocurrency market by pegging its value to the total market capitalization of all cryptocurrencies. To avoid confusion, this article will focus primarily on Coinbase’s Base network.
Overview and Technical Foundation of the Base Network
The Base Network is an Ethereum Layer 2 solution developed in collaboration between Coinbase and Optimism, which was officially launched in 2023. It is built on Optimism’s open-source OP Stack framework and utilizes Optimistic Rollup technology.This means that Base bundles a large number of off-chain transactions for processing and then submits the transaction data to the Ethereum mainnet for final settlement and security guarantees. This architecture is designed to provide a secure, low-cost, and developer-friendly environment, enabling faster, cheaper, and more secure on-chain transactions while maintaining compatibility with the Ethereum ecosystem.
Ecosystem Development and Key Metrics
Since its launch, the Base network’s ecosystem has demonstrated strong growth momentum:
- User Activity: Base has seen rapid user growth. For example, between June and July 2025, its daily active addresses exceeded 3.5 million. As of July 19, 2025, monthly active addresses reached 28.4 million.
- Total Value Locked (TVL): The Base Network’s TVL has continued to climb. As of September 6, 2026, the Base Network’s TVL reached $5.67 billion.Historically, on September 20, 2025, Base’s DeFi TVL ranked fourth among all chains at $5.61 billion; earlier, on August 21, 2024, its TVL stood at $1.5 billion, ranking sixth among all public blockchains.
- Stablecoin Supply: As of September 20, 2025, the circulating supply of stablecoins on Base reached $4.99 billion, demonstrating its significant role in stablecoin circulation.
- Transaction Fees: Following the Ethereum Dencun upgrade (completed by October 2025), transaction fees on the Base blockchain decreased significantly, falling to less than 1 cent.
- Coinbase Sequencer Revenue: As of December 31, 2025, Coinbase generated $252.888 million in revenue through the Base Sequencer, reflecting the economic benefits the Base network brings to Coinbase.
Recent Developments and Partnerships
In October 2026, the Base Network announced the launch of 25 new features to further enhance its ecosystem. These features include partnerships with major DeFi protocols such as Aave and Modveon, aimed at providing innovative services such as tokenized stock-backed lending and instant remittances.Base founder Jesse Pollak stated in October 2026 that tokenized stocks and non-USD stablecoins will lead the future “tokenization supercycle.” Currently, Base supports 32 stablecoins across 21 currencies and has launched tokenized stocks, with daily trading volumes ranging from $70 million to $100 million.
Base has established partnerships with numerous major cryptocurrency players, including well-known decentralized applications such as Uniswap, Maverick, and Dackieswap, which have been deployed on Base, further enriching its ecosystem.
Future Prospects and Challenges
Coinbase has high hopes for the Base network. Its vision is to use Base to scale Ethereum, reduce transaction costs, attract more users to Web3, and provide a platform for decentralized applications (dApps). Coinbase aims to bring 1 million developers and 1 billion users onto the blockchain.
Ambitious Strategic Goals
Base has set an ambitious roadmap for 2025, which includes:
- Ensuring $100 billion in on-chain assets.
- Attracting 25 million users.
- Recruiting 25,000 developers.
- Processing 1 billion transactions (targeted for achievement by October 2025).
- Plans to increase block space capacity to 250 million Gas units per second to improve transaction efficiency.
Base’s strategic focus revolves around five core priorities: providing advanced tools for developers, fostering dApp innovation, simplifying the user experience, enhancing global liquidity, and upgrading infrastructure to improve scalability and performance.
Challenges
Despite the Base network’s continued growth, it still faces multiple challenges:
- Seasonality and Volatility: Network activity may face the risk of decline once promotional campaigns end.
- Market Competition: Other Layer 2 networks, such as Arbitrum, Optimism, and zkSync, are also actively expanding and competing for users and developer resources.
- Regulatory Uncertainty: As a project affiliated with publicly traded companies such as Coinbase, Base’s growth may be affected by evolving cryptocurrency regulations.
- Technical Challenges: Blockchain technology generally faces challenges such as interoperability, security, and user trust, which Base must also continuously address.For example, in September 2026, congestion on the Base network caused intermittent transaction failures on Coinbase Wallet and Coinbase.com; in June 2026, the Base blockchain mainnet experienced a stall, preventing new blocks from being reliably generated.
Overall, backed by Coinbase’s strong track record and supported by Optimism’s technology, the Base network has made significant progress in the Ethereum Layer 2 space and demonstrated tremendous potential for driving the widespread adoption of Web3. However, its future development will still require navigating intense market competition and an ever-evolving regulatory landscape.
