Kraken is reportedly planning to launch its own layer-2 (L2) blockchain, competing with Coinbase’s Base L2.
The U.S.-based crypto exchange is seeking support from blockchain companies like Polygon, Nil Foundation, and Matter Labs for development.
Coinbase’s Base L2 has seen rapid growth, acquiring 1 million unique addresses within 11 days of its launch.
Kraken, the well-known U.S.-based crypto exchange, is making waves in the blockchain world as it reportedly prepares to launch its own layer-2 (L2) blockchain. This move puts Kraken in direct competition with Coinbase, which introduced its Base L2 earlier this year.
While Kraken has remained tight-lipped about the project, insiders familiar with the matter have revealed that the exchange is considering collaborating with blockchain heavyweights like Polygon, Nil Foundation, and Matter Labs for the development of its L2 solution. This strategic alliance with prominent players indicates Kraken’s commitment to delivering a robust and competitive L2 offering.
A Kraken spokesperson, while not divulging specifics, commented, “We’re always looking to identify and solve for new industry challenges and opportunities.” This statement underscores Kraken’s dedication to innovation in the rapidly evolving blockchain and cryptocurrency landscape.
Coinbase’s Base L2 Success
In February 2023, Coinbase made a significant announcement with the launch of its Base L2, a layer-2 blockchain built on Ethereum. Base aimed to provide a secure, cost-effective, and developer-friendly platform for building decentralized applications (dapps) onchain.
Coinbase’s CEO, Brian Armstrong, emphasized the importance of this milestone, stating, “Today is an important day for accelerating a global, decentralized financial system and increasing economic freedom in the world.” Base quickly gained recognition as the fastest-growing Layer-2 blockchain, achieving one million unique addresses within just 11 days of its launch.
Additionally, a CoinGecko report highlighted the remarkable adoption rate of layer-2 networks. In contrast to the earlier layer-2 solutions like Arbitrum and Optimism, which took 303 and 191 days, respectively, to reach one million addresses, Base achieved this milestone at an unprecedented pace.