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Base Protocol (BASE) 385% Rally Has Nothing to Do With Coinbase's Recently Announced L2 Project

Fri, 02/24/2023 - 10:58
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Arman Shirinyan
Enormous 385% rally on Base is not what you think, and it certainly has nothing to do with Coinbase
Base Protocol (BASE) 385% Rally Has Nothing to Do With Coinbase's Recently Announced L2 Project
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Base Protocol (BASE) has seen a massive rally of over 385% in the last few days. Unfortunately, investors who drove up the price of the cryptocurrency have since discovered that they were mistaken about its relation to the recently announced Coinbase Layer 2 launch project. As a result, the price of BASE has since corrected by almost 75%.

BASE chart
Source: CoinMarketCap

The confusion began when investors mixed up the two assets and assumed that Base Protocol was in some way connected to Coinbase's Layer 2 launch. The launch was seen as a significant step forward for Coinbase, as it aims to bring faster and cheaper transactions to its platform. However, BASE has nothing to do with this project.

Investors who bought into BASE thinking it was connected to Coinbase's Layer 2 launch quickly drove up the price of the cryptocurrency, leading to a significant rally. However, the mistake was soon discovered, and the price of BASE has since corrected sharply, wiping out most of the gains.

Kevin O'Leary Says Crypto Exchanges Will Keep Going to Zero Until This Happens

Despite the correction, some investors still believe that BASE could have value in the long run. The project is focused on building an asset that is pegged to the capitalization of the market. This approach is seen as potentially more stable and less volatile than traditional cryptocurrencies, which could make it an attractive investment for some.

It is worth noting that the recent confusion and subsequent correction in the price of BASE is a reminder of the importance of conducting thorough research before investing in any cryptocurrency.  Coinbase's BASE Layer 2 solution does not yet have a token, hence, you cannot invest in it directly.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.