Coinbase’s stock price has surged since the company’s first-quarter earnings report. Will its Base offering be enough for investors to sustain the momentum?
Coinbase’s first-quarter earnings report — released May 2 — indicated the company has been thriving thanks to a vibrant market for Bitcoin (BTC) and Ethereum (ETH) over the last several months. However, the numbers indicated Base platform has shown even greater potential — and could make Coinbase the NVIDIA of decentralized finance (DeFi).
Launched in August 2023, Base is a secure, low-cost Ethereum layer-2 solution built to scale Coinbase’s user base on-chain to make transactions faster. Coinbase’s vision is to decentralize Base and create an open, global crypto ecosystem leveraging the security of the Ethereum mainnet, which is accessible to everyone.
According to Coinbase’s Q1 report, volume on Base has surged past its competitors, particularly after the rollout of Ethereum’s Dencun upgrade. DeFi crypto exchanges on Base saw daily trading volume surpass $1 billion per day, narrowing the gap between Coinbase’s main centralized exchange trading volumes, where almost 250 cryptocurrencies are traded.