Base Protocol Token Jumps 275% on Coinbase’s L2 Network Launch

The Base Protocol token (BASE) price jumped from around $2 to a high of $7.50 after the announcement by Coinbase of Base’s Layer-2 solution testnet launch.

Following a rally of about 275%, prices cooled, but in the last 24 hours the token still added more than 15%.

BASE’s market cap barely exceeds $1 million. By this metric the token sits at the low end of CoinGecko’s top 3,000. Speculators apparently reacted to the coin’s name echoing Coinbase’s L2 offering.

Coinbase has warned that it does not plan to issue a new token. Fees are paid in ETH.

2/ Important: Base is *not* a token

We do not plan to issue a new network token for Base and will use ETH as the native gas token.

— Coinbase (@coinbase) February 23, 2023

Coinbase built a new network on the OP Stack architecture from another Ethereum Layer-2 solution — Optimism. The OP token rose almost 12% in the last 24 hours.

Yesterday, the Synthetix deployed the third version of the protocol on the Ethereum mainnet and Optimism.

Earlier, the DeFi project developers launched this L2 network in 2021.