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Kraken Plans to Launch Layer-2 Blockchain to Rival Coinbase’s Base

Published 07/11/2023, 11:20
Updated 07/11/2023, 11:45
Kraken Plans to Launch Layer-2 Blockchain to Rival Coinbase’s Base
COIN
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  • Kraken plans to launch its own layer-2 blockchain, hot on the heels of Coinbase’s layer 2, Base.
  • The exchange considers collaborating with Polygon, Nil Foundation, and Matter Labs.
  • The adoption of layer-2 blockchains has been growing over the past few years.

According to recent reports, the U.S.-based crypto exchange Kraken has been planning to launch its own layer-2 (L2) blockchain, seeking support from prominent players in the industry. A Kraken L2 would rival platform Coinbase’s Base L2, launched earlier this year. Kraken is considering leading blockchain companies like Polygon, Nil Foundation, and Matter Labs for development.

People familiar with the matter disclosed the plan to launch a new L2 but Kraken remained tight-lipped. A Kraken spokesperson declined to share details, but stated, “We’re always looking to identify and solve for [sic] new industry challenges and opportunities.”

Previously, in February 2023, Coinbase (NASDAQ:COIN) announced the initial testnet of Base, a layer-2 blockchain built on Ethereum, to offer “a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps or dapps onchain.” Later, in August, Coinbase CEO Brian Armstrong announced the launch of Base via an X post, commenting, “Today is an important day for accelerating a global, decentralized financial system and increasing economic freedom in the world.”

Base is recognized as the fastest growing Layer-2, according to a CoinGecko report. Within the initial 11 days of its launch, Base acquired 1 million unique addresses. Prior to the launch itself, the platform gained 523k addresses via unofficial bridges.

The CoinGecko report also sheds light on the growing adoption and the faster adoption rate of layer-2 networks. The earliest layer-2 networks, like Arbitrum and Optimism, took 303 and 191 days, respectively, to hit 1 million addresses, contrasting Base’s rapid achievement of the same milestone.

The post Kraken Plans to Launch Layer-2 Blockchain to Rival Coinbase’s Base appeared first on Coin Edition.

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