Base Network: The new king of the Layer 2 track, how to reshape the crypto trading experience?

Coinbase’s Layer 2 network Base is rapidly transforming the Ethereum ecosystem landscape. As a public chain incubated by the world’s largest compliant exchange, Base not only inherits Ethereum’s security but also achieves a breakthrough with transaction fee reductions of over 90% through Optimism’s optimistic rollup technology.

Currently, the Base ecosystem has over 100 decentralized applications, covering fields such as gaming, digital asset management, DeFi protocols, and NFT marketplaces, forming a rapidly expanding ecosystem.

01 Technical Breakthroughs and Architectural Advantages of Base Network

The core technical architecture of the Base network is built on Optimism’s OP Stack, utilizing an optimistic rollup solution. This technology bundles multiple transactions before submitting to the Ethereum mainnet, significantly saving costs and improving efficiency.

Base’s technological innovation is not just on paper. According to the latest announcement on May 24, 2025, Base plans to achieve 200-millisecond transaction speeds, fees below $0.01, and increase processing capacity to 200 transactions per second (TPS).

These upgrades include neutrality, resistance to sandwich attacks, and phased decentralization, which will greatly reduce crypto transaction costs and enhance on-chain transaction efficiency.

Base’s architecture design cleverly balances security and scalability. The network offers comprehensive Ethereum compatibility, allowing developers to seamlessly migrate existing Ethereum applications while enjoying the performance advantages of Layer 2 solutions.

For users, this compatibility means experiencing faster and cheaper transactions without learning new wallets or tools.

02 Ecosystem Expansion and Strategic Layout

The expansion speed of the Base ecosystem is remarkable. Coinbase has strategically positioned Base as the foundation of its on-chain product development strategy, planning to make Base the main platform for its own blockchain products while fostering an open ecosystem for third-party developers.

This dual strategy allows Base to benefit from Coinbase’s resources while maintaining the openness of a decentralized ecosystem.

The Base Camp 2025 conference marks a new milestone in the development of the Base ecosystem. During the event, the Base team officially began initial exploration of network tokens and announced a joint launch of a cross-chain bridge with Solana and several developer tools.

Although there are no specific plans for token issuance yet, this strategic move demonstrates Base’s determination to become a global on-chain economic hub.

The cross-chain bridge between Base and Solana supports assets flowing freely between ERC20 and SPL tokens, enabling deposit and use of SOL in Base applications and bringing Solana assets into any Base app. This initiative breaks down ecosystem barriers and makes Base a true core hub of on-chain economy.

03 Token Exploration and Value Capture Mechanisms

Base has undergone a major shift in its token strategy from “never issuing” to “studying issuance.” In September 2025, Jesse Pollak, head of Base, first hinted at the possibility of issuing a native token at the BaseCamp conference, indicating active exploration.

This change is driven by external competitive pressures and internal development needs.

Token issuance holds multiple strategic significances for the Base ecosystem. Firstly, it can establish a long-term effective value cycle, binding developers, users, and liquidity within a shared interest system.

Jesse Pollak has explicitly stated that the goal of issuing tokens is to promote network decentralization and provide more long-term, deterministic incentives for creators and developers.

In the Web3 ecosystem, tokens are the most effective mechanism for coordinating interests, consolidating value, and maintaining vitality.

For Base, which is entering the mid-to-late growth stage, issuing tokens signifies a key step from “usage growth” to “value growth.” The BASE token is expected to become the “quote currency” on the Base chain and serve as the main valuation unit in decentralized exchanges within the ecosystem.

This will create stable market demand and solidify its core position in the Base ecosystem.

04 Popular Ecosystem Projects and Investment Opportunities

Several promising projects have emerged within the Base ecosystem, with Aerodrome Finance being one of the most noteworthy.

As one of the largest DEXs on Base, Aerodrome recently announced a merger and upgrade with Velodrome Finance from the Optimism ecosystem, aiming to build a unified governance and incentive system covering Ethereum, Base, OP, and Arc.

According to data from Gate platform on December 18, the current price of Aerodrome Finance (AERO) is $0.663, with a 24-hour increase of +1.89%, and a total market cap of $599 million. AERO supports spot and perpetual contract trading on Gate, providing investors with diversified participation options.

Besides Aerodrome, there are other noteworthy projects in the Base ecosystem. Virtuals Protocol, a platform for AI agents on Base, once led market enthusiasm with its “staking participation in new token issuance” model.

Zora is one of the largest and most active content and token issuance platforms on Base, with a unique creator token issuance model that continues to attract community participation.

05 Trading Opportunities in the Base Ecosystem on Gate

As a leading global cryptocurrency exchange, Gate provides a convenient trading channel for assets within the Base ecosystem. In addition to Aerodrome Finance (AERO) mentioned earlier, Gate also supports trading of various assets related to the Base ecosystem.

For investors wishing to participate in the development of the Base ecosystem, Gate offers comprehensive trading tools and services. The platform’s spot trading, perpetual contracts, and leverage trading products can meet different risk preferences.

Moreover, Gate regularly launches trading activities and reward programs for popular ecosystem projects, offering early participants additional earning opportunities.

Future Outlook

The future development of the Base network is highly anticipated. With the advancement of network token exploration, the improvement of cross-chain bridges, and continuous upgrades of developer tools, Base is steadily moving toward its goal of becoming a global on-chain economic hub.

Jesse Pollak’s ambitious goal—making Base the fastest blockchain with 200-millisecond latency, transaction fees below $0.01, and a throughput of 200 transactions per second—if achieved, will revolutionize the current crypto trading experience [reference:13].

For investors, the Base ecosystem offers multi-layered investment opportunities from infrastructure to application layers. Whether participating in liquidity mining of DeFi protocols like Aerodrome, investing in innovative platforms like Virtuals Protocol, or simply holding Base ecosystem assets for value appreciation, there are potential returns as the network expands.

With Coinbase’s ongoing resource injection and ecosystem projects flourishing, Base is poised to stand out in the competitive Layer 2 space and become a vital bridge connecting traditional finance with the decentralized world.