Coinbase has announced plans to increase the storage of corporate and customer USDC balances on Base, an Ethereum Layer 2 solution incubated by the exchange and built on the open-source OP Stack. This move is expected to provide benefits such as lower fees, faster settlement times, and enhanced security for managing customer funds. Coinbase’s Vice President and Head of Consumer Products, Max Branzburg, announced the decision in a post, stating that it will allow them to manage and secure customer funds with lower fees and faster settlement times. He encouraged other companies to follow Coinbase’s lead in moving their business onchain. The community has shown support for this decision, with contributors like Jesse Pollak expressing excitement for Coinbase’s transition to onchain.
Base, the Ethereum Layer 2 solution, has seen a significant surge in total value locked (TVL), with user deposits surpassing $1 billion according to data from Defi Llama. The TVL has more than doubled since the beginning of the month, with the surge attributed to decentralized exchange Aerodrome contributing the majority of the locked value. Transaction counts on Base have also increased notably, surpassing other optimistic rollups in terms of growth. While Arbitrum and OP Mainnet have also experienced surges in transaction counts, Base has seen a more substantial increase in daily transaction count. This positive growth indicates a promising future for Base as a Layer 2 solution.
Coinbase’s decision to increase USDC reserves on Base comes as Circle, a Boston-based crypto firm, announces plans to halt the creation of USDC tokens on the Tron blockchain. Circle’s decision was made in order to ensure the transparency, trustworthiness, and safety of USDC. Binance has also announced that it will no longer facilitate deposits and withdrawals of USDC using the Tron blockchain network. However, users will still be able to trade USDC on the platform, and deposits and withdrawals through other supported networks will remain unaffected. With approximately $32.1 billion in circulation, USDC stands as the eighth-largest cryptocurrency and the second-largest stablecoin after Tether, with most USDC tokens in circulation based on the Ethereum blockchain.
The move towards increasing USDC reserves on Base is expected to bring significant benefits to Coinbase and its customers. Lower fees, faster settlement times, and enhanced security will make managing customer funds more efficient and cost-effective. The community has shown support for Coinbase’s decision, with contributors like Jesse Pollak expressing excitement and pledging continued support for Coinbase in their onchain endeavors. With a surge in Base’s TVL and transaction counts, it appears that the Ethereum Layer 2 solution is on a promising trajectory for future growth and adoption.
Circle’s decision to halt the creation of USDC tokens on the Tron blockchain aligns with their goal of ensuring transparency, trustworthiness, and safety for USDC. Similarly, Binance’s decision to no longer facilitate deposits and withdrawals of USDC on the Tron network is part of their commitment to maintaining a secure and reliable platform for their users. With USDC being the second-largest stablecoin in circulation, these decisions by Circle and Binance are significant in maintaining the integrity and stability of the cryptocurrency ecosystem. The focus on security and trustworthiness in the management of USDC highlights the importance of maintaining high standards in the cryptocurrency industry.
