Move Funds On L2 Base

Coinbase is moving both corporate and customer USDC balances on its L2 network, Base, to manage and secure user funds with lower fees and faster settlement times, VP Max Branzburg recently announced. This transition will not impact the Coinbase user experience, Branzburg reassured users. Furthermore, he expressed excitement about advancing their operations on-chain. He encouraged other firms to embrace similar approaches.

If you’re curious about how Coinbase manages and secures your funds, you can learn more here. We always store your assets 1:1. We will never repurpose your funds. We do not lend or take any action with your assets, unless you specifically instruct us to.

CEO Brian Armstrong lauded the move, emphasizing that the crypto industry needs to bridge the gap to traditional finances [tradfi] to facilitate the flow of fiat into crypto. “For that, I think Coinbase is providing the most trusted infrastructure globally, including now for derivatives,” he said.

Coinbase is moving its business on-chain. Eventually, all crypto exchanges will move on-chain Then banks Every asset is a future token. Every bank is a future chain Ethereum is the world’s settlement layer.

The reaction has been mixed. Some expressed concerns about whether a centralized player holding customer assets can truly be considered decentralized or not, or if it is safe against hacks or exploits.

Meanwhile, since the launch of EIP-4844, commonly called proto-danksharding, Ethereum layer-2 solutions like Base have posted a 5x increase in demand, driving fees back up. Gas fees skyrocketed by a staggering 2000% on March 20, reaching an average of $2 during periods of intense network congestion.

Coinbase L2 Team Plans To Hike Gas Fees By 50%

Although fees swiftly returned to their usual $0.2 level as activity levels subsided, they surged once more over the weekend, reaching $1.9—an 1100% increase. To reduce fees and scale, Base Contributors is set to increase the gas target by 50% [to 3.75 mgas/s] soon and then to 5 mgas/s following an observation period, targeting early next week.

Following Ethereum’s Dencun upgrade, Base’s TVL metrics reach unprecedented levels. As reported by TronWeekly, the total value locked hit a new all-time high of $2.16 billion. The current total locked-up volume of the Ethereum Layer 2 network is over $36 billion.