South Korean crypto exchange Korbit has partnered with Coinbase to bring Base Chain onto the platform. Now, users can perform Base Chain deposits and withdrawals directly on Korbit.

According to a Business Korea report published on Nov. 8, Korbit has signed a business agreement with U.S major crypto exchange Coinbase to host the Base Chain Network on their platform.

Through Korbit’s collaboration with Coinbase, its users can now perform multi-chain deposits and withdrawals directly on the Korbit platform. For instance, users can deposit Ether(ETH) on the Ethereum Chain and withdraw it on the Base Chain(BASE) and vice versa.

In return, Coinbase will support Korbit through promotional efforts, community events, and introduction into the Base Chain ecosystem.

Not only that, the partnership between the two companies will also result in collaborative efforts to develop on-chain technology in South Korea and expanding support for Base Chain functions across the country.

CEO of Korbit, Oh Se-jin, expressed optimism in Korbit’s partnership with Coinbase. He hopes the collaboration will serve to further expand South Korea’s growing virtual asset industry.

“This is an opportunity to develop business models aligned with rapidly changing global trends and secure market competitiveness. We will provide differentiated benefits to users through various new services in the future,” said Oh.

Vice president of business development at Coinbase, Dan Kim, said that Base Chain is excited to welcome more Korean traders into its on-chain ecosystem. He described Base Chain as a platform that aims to be accessible to anyone anywhere.

“We look forward to continuously working with Korbit, including hosting buildathons and hackathons and educational community events in Korea,” said Kim.

Base Chain is Coinbase’s Ethereum Layer 2 blockchain designed to enable an on-chain application ecosystem. The blockchain network was launched in August 2023 with a focus on enhancing the dApp ecosystem on Ethereum.

In a recent discussion, Solana’s co-founder, Anatoly Yakovenko, raised questions about the vitality of the Ethereum ecosystem without the contributions from Base, a Layer 2 solution. This query comes amidst observing the metrics of growth shown by Base, particularly in user activities and transaction volumes.

Rapid Growth In Base Layer 2 Solutions

Base has seen an exceptional increase in key activity metrics such as Active Addresses, Transaction Count, and Throughput, all achieving new peaks recently. This growth trajectory is also mirrored in its Stablecoin Market Cap and Total Value Locked (TVL), which are reported at all-time highs. 

Base Layer 2 integration with Coinbase’s existing large user base is seen as a significant factor driving its demand and subsequent rise in these metrics.

Additionally, the surge in Base’s activity is attributed partly to the popularity of meme coins within its ecosystem, notably MOG and BRETT. These coins have ascended into the top 100 cryptocurrencies by market cap and are nearing their peaks. 

According to DefiLlama reports, Aerodrome Finance has played a significant role in the surge of Base’s Total Value Locked (TVL), with memecoin trading as a key driver. The platform has contributed to $1.36 billion TVL on Base Layer 2, making it a substantial force behind the rapid growth. 

Following the impressive performance by Base Layer 2, Anatoly Yakovenko commented,

“So basically without Base, Ethereum ecosystem would be dead in the water right now.”

However, on-chain economist Lily Liu highlights a potential issue with how the visualization groups active addresses, suggesting it could be misleading. According to Liu, Solana reports significantly higher monthly active addresses, about 100 million, more than four times the 22 million reported by Base. This substantial difference shows that the grouping used in the visualization is not an accurate representation of the ecosystem’s activity levels.

Liu proposes a more precise method of presenting this data would be to use a single bar chart with EVM and non-EVM bars shaded differently. This would allow for a clearer distinction and more accurate comparison. 

Additionally, the claim that “Base and Solana” have the highest monthly active addresses overlooks that the NEAR Protocol has 31 million MAA, outpacing Base. Liu highlighted,

“The headline should therefore read, …Solana and Near as the most active.”

Impact on Ethereum Market Position

Conversely, Ether has faced challenges since its Dencun upgrade, marked by an inflationary supply and declining revenues. In contrast, Base Layer 2 rise has been conspicuous, capturing a notable share of transactions and revenues. This has positioned it as a leading contender among Ethereum’s Layer 2 solutions.

The divergence in performance between Ethereum and Base highlights the evolving dynamics within the blockchain ecosystem. Layer 2 solutions are becoming ecosystems in their own right with distinct communities and economic activities.

At press time, ETH price is $2,678, showing a slight 7-day increase of 2%. The 24-hour trading volume surged by 68% to $19.68B showing heightened trading activity and investor interest.

Moreover, most recently, Anatoly Yakovenko shed light on the differences between Solana and ETH. Despite its technological advantages, Solana has not gained the same institutional attention as Ether. He pointed out that the contrasting scaling methods of the two platforms might impact institutional interest. Solana emphasizes hardware scaling, while Ethereum focuses on software solutions.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.