Coinbase's Layer-2 network, Base, has seen a remarkable increase in transaction volumes and fees, generating an estimated net profit of $26 million. This surge is attributed to the growing demand and a large number of project listings on the platform this year.

Base, an Ethereum-based Layer-2 solution, has become a significant contributor to Coinbase's overall earnings. The platform's success has led to a rise in gas fees, with Coinbase retaining 85% of the profits and the remaining 15% going to competitor Optimism.

The impressive growth of Base has allowed it to compete with other Layer-2 networks like Arbitrum and Optimism. Data from Dune Analytics indicates that Base's utility has contributed to $26 million in net profit for Coinbase since its inception. This development also provides Coinbase with a valuable diversification from its traditional brokerage business.

Coinbase is committed to enhancing the Base platform, aiming to make it more economically viable. A notable update includes the ability to store users' USDC balance within the platform, offering reduced fees and faster settlement times.

OKX Introduces a New Challenge

OKX, a cryptocurrency exchange, has launched its Ethereum-based layer-2 scaling network, X Layer, positioning itself among leading blockchain platforms offering faster and more cost-effective transactions compared to Ethereum's mainnet.

X Layer is built using Polygon CDK and is one of the first networks to utilize Polygon's AggLayer functionality. With this launch, OKX directly competes with Coinbase and its Layer-2 solution, Base. A key difference between Base and X Layer is the latter's integration of zero-knowledge (ZK) proofs.