Coinbase Layer 2 Base goes live alongside new collaborator, Chainlink
- Coinbase’s Ethereum Layer 2 solution added Chainlink as a collaborator for implementing LINK’s price feeds on its chain.
- Chainlink’s native integration will enable developers to port applications to Base and power the development on the Layer 2 chain.
- LINK price is in an uptrend, Chainlink yielded 14% gains for holders since the beginning of this week.
Coinbase’s Ethereum Layer 2 solution – Base – is live as of Wednesday. Ahead of its mainnet launch, Base collaborated with Chainlink, for a native integration. Developers of Web3 projects are likely to power development on Coinbase’s Layer 2 chain.
LINK price is on track to climb higher, after yielding double-digit gains for holders this week.
Also read: Ripple XRP price rally to $21 target likely, experts support Judge Torres' ruling
Coinbase collaborated with Chainlink to welcome DeFi projects and developers to Base
Coinbase, one of the largest crypto exchanges in the ecosystem, collaborated with a Web3 services platform Chainlink. Through the integration of Chainlink’s price feeds, DeFi projects and their developers will find it easier to connect external applications, lending and borrowing protocols and derivatives markets on Base.
Coinbase’s Layer 2 will therefore enable developers to port their applications over to the chain and power experimentation with new use cases, in a scalable environment.
Analyst identifies how to benefit from Base mainnet launch for investors
Miles Deutscher, a crypto analyst and trader, evaluated the launch of Coinbase’s Layer 2. While Base does not have a token of its own, the analyst listed three ways in which investors can benefit from the launch and earn incentives.
- Airdrop/ Incentive campaigns for projects launched on Base : Hundreds of projects are likely to roll out their protocols on the Layer 2 and offer airdrop/ incentive campaigns to users. According to the analyst, this is an opportunity to collect incentives and benefit from project launches on the Ethereum Layer 2 chain.
- Invest in projects that leverage Base’s success : Monitoring new project launches on Base, the analyst recommends identifying protocols that gain early market share. It's important to note that most new projects end up as rug pulls or scams and investors are cautioned to perform due diligence before making an investment.
Chainlink price continued its upward trend as the news of collaboration with Coinbase acted as a bullish catalyst. At the time of writing, LINK price is $7.764.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
