Base Protocol (BASE), a random cryptocurrency, experienced a significant surge of 234% following a major announcement made by Coinbase.
The announcement was about the launch of a new Ethereum layer two (L2) network named Base, which aims to provide a secure, low-cost, and developer-friendly way for anyone, anywhere to build decentralized apps (dApps) on-chain.
Coinbase plans to incubate Base and leverage its experience in building crypto products to progressively decentralize the chain over time.
The exchange announcement had nothing to do with the BASE token, which had been trading at $1.27 before the announcement. After the news broke, the cryptocurrency surged to a peak of $4.25, representing a 234% increase in just a few hours.
Anthony Sassano, a prominent member of the Ethereum community, tweeted about Coinbase's new network, stating that it was a significant step towards making on-chain the next online platform and onboarding a billion users into the crypto economy.The tweet went on to explain that Base would be powered by Ethereum and would not have a token. Still, this didn't dissuade speculators from piling into the token.
Base aims to be decentralized, permissionless, and open to anyone with the vision of creating a standard, modular, rollup-agnostic Superchain powered by
According to Syncracy Capital co-founder Ryan Watkins, Coinbase's rollup is a "watershed moment" in the evolution of Ethereum's rollup ecosystem, and it is expected to onboard tens or even hundreds of millions of new users and institutions on-chain.
The surge in BASE's price shows how the crypto market can be unpredictable and irrational. Although the token has nothing to do with Coinbase's new network, the market reacted by driving up its price to over three times its previous value. The surge highlights the importance of being cautious when investing in cryptocurrencies and conducting proper research before making any investment decisions.