Coinbase's Ethereum layer-2 network Base—the largest L2 by total value locked (TVL over $5 billion)—may soon introduce its own native token, according to a Monday announcement by the cryptocurrency exchange. The network, launched in 2023 without a token, has quickly become the cheapest and fastest Ethereum L2, generating significant profit for its corporate owner.
CEO Brian Armstrong Confirms Exploration
“We’re exploring a Base network token. It could be a great tool for accelerating decentralization and expanding creator and developer growth in the ecosystem,” said Coinbase CEO Brian Armstrong. “To be clear, there are no definitive plans. We’re just updating our philosophy. As of now, we’re exploring it.” The cautious wording leaves room for uncertainty, but given Base’s explosive growth, the market widely expects a token launch in the near future.
Standard Chartered Calls Base 'Extractive'
Base's profitability has drawn criticism from traditional finance. London-based bank Standard Chartered earlier this year described Base as an “extractive network” that siphons value from Ethereum. In a report, the bank stated: “Base is passing all of the profit it extracts to Coinbase, its corporate owner. We estimate that GDP lost to Base has already reduced ETH’s market cap by $50 billion.” This narrative paints Base as a value leak rather than a contributor to the Ethereum ecosystem.
Token Could Redistribute Value
A native token could potentially change Base's value flow. Instead of all profits going to Coinbase, a token would allow distribution to network participants—developers, liquidity providers, and users—aligning incentives with Ethereum’s ethos. However, no specific tokenomics have been revealed. Armstrong’s emphasis on “no definitive plans” suggests Coinbase is proceeding cautiously, likely to navigate regulatory hurdles, especially from the U.S. Securities and Exchange Commission (SEC).
Market Expectations and Risks
If Base launches a token, it could become one of the most anticipated L2 tokens of 2026. With over $5 billion in TVL and a robust DeFi ecosystem, the token’s initial market cap might exceed $100 billion. But Coinbase must address regulatory compliance and ensure the token does not further centralize value extraction. The core question remains: will a Base token strengthen Ethereum or become another extractive layer?