In one sentence: BASE is a Layer 2 blockchain created by Coinbase, built on Ethereum, where transactions cost less than $0.05 and settle in about 2 seconds, while inheriting Ethereum's full security.
Launched in August 2023, BASE quickly became the largest Layer 2 network by DeFi TVL and now processes over 13 million transactions per day. If you've heard the name but aren't sure what it actually means, this guide covers everything from the basics to practical steps for getting started.
What is a Layer 2 blockchain?
Before explaining BASE itself, it helps to understand the problem it solves.
Ethereum is the most secure and decentralized smart contract platform in existence, but it has a hard limit on how many transactions it can process per second (roughly 15–30 TPS at peak). When demand is high, fees spike to $10–$100 per transaction, and confirmation times slow down.
A Layer 2 is a secondary network that runs on top of Ethereum, handling transactions in bulk and periodically settling the result on the main chain. Users get the low fees and speed of the L2, while the security guarantee ultimately comes from Ethereum.
BASE is one of these Layer 2 networks.
What is the BASE network?
BASE is a Layer 2 blockchain developed by Coinbase, one of the world's largest and most regulated cryptocurrency exchanges, listed on Nasdaq. It launched publicly in August 2023 and uses the OP Stack, the same open-source framework that powers the Optimism network.
Key characteristics:
- EVM-compatible: any smart contract or wallet that works on Ethereum also works on BASE without changes
- Gas token: ETH (no separate BASE token to buy)
- Transaction speed: finality in roughly 2 seconds
- Transaction cost: typically $0.001 to $0.05
- Security: data is published to Ethereum mainnet, so security is inherited from L1
The absence of a native gas token is a deliberate design choice. Users don't need to buy a proprietary token just to pay fees, which removes one of the biggest onboarding barriers common in other L2 ecosystems.
How does BASE work? Optimistic Rollup explained
BASE is an Optimistic Rollup. Here is what that means in plain terms.
Instead of verifying each transaction individually on Ethereum (which would be slow and expensive), BASE batches hundreds of transactions together and submits a single compressed summary to Ethereum. The cost is spread across all transactions in the batch, which is why individual fees drop so dramatically.
Why "optimistic"?
Transactions are assumed valid by default. There is a 7-day challenge window after each batch is submitted during which any participant can prove a transaction was fraudulent. If fraud is detected, the transaction is reversed and the party that submitted the fraud is penalized. This mechanism ensures security without requiring every transaction to be verified in real time.
The OP Stack and the Superchain
BASE is built on the OP Stack, the same open-source framework used by Optimism. This makes BASE part of the Superchain: a growing set of interoperable L2 networks that share the same codebase and can eventually communicate natively with each other. Coinbase actively contributes to the OP Stack and directs a portion of BASE's revenue to the Optimism Protocol treasury.
Why does BASE matter?
Several factors make BASE stand out among the many L2 networks:
Coinbase's distribution
Coinbase reported 9.3 million monthly active trading users in Q3 2024. BASE has direct access to this base (no pun intended) of users through the Coinbase app and Coinbase Wallet, where the BASE network comes pre-configured.
No native gas token
Other networks like Polygon require users to hold MATIC/POL to pay fees. On BASE, ETH is the only gas token, which means anyone already holding ETH on Coinbase can move to BASE without buying an additional asset.
Institutional trust
Coinbase is a regulated, publicly listed company. For users who would normally avoid DeFi due to concerns about legitimacy, Coinbase's involvement provides a level of trust that purely anonymous protocol teams cannot.
Open source and collaborative
Coinbase does not own the OP Stack exclusively. Contributions are public, governance is shared with Optimism, and any team can build an OP Stack chain. BASE's revenue model is aligned with the health of the broader Superchain ecosystem.
BASE by the numbers: 2025 data
| Metric | Value |
|---|---|
| DeFi TVL | $4.7B+ |
| Ranking among L2 networks (TVL) | #1 |
| Share of total L2 on-chain revenue | 62% |
| Record daily transactions (Jan 1, 2025) | 13.39 million |
| Daily active addresses | 1M+ |
| Weekly active addresses | 4M+ |
| Cumulative on-chain revenue in 2025 | $75.4M+ |
BASE surpassed Arbitrum One in DeFi TVL in January 2025, becoming the leading Layer 2 network by this metric.
BASE vs. Ethereum vs. other L2s
| Network | Type | Avg. fee | Gas token | DeFi TVL |
|---|---|---|---|---|
| BASE | L2 / Optimistic Rollup | $0.001–$0.05 | ETH | $4.7B+ |
| Ethereum | L1 | $1–$50 | ETH | $52B+ |
| Arbitrum One | L2 / Optimistic Rollup | $0.01–$0.10 | ETH | $4B+ |
| Optimism | L2 / Optimistic Rollup | $0.01–$0.10 | ETH | $1B+ |
| Polygon PoS | L2 / Sidechain | ~$0.001 | MATIC/POL | $1B+ |
BASE stands out for its balance of low cost, Ethereum security inheritance, and institutional backing. Polygon PoS offers similar fee levels but uses a different security model (sidechain, not rollup), with weaker ties to Ethereum's L1 finality.
How to use BASE: step by step
Step 1: install a compatible wallet
The most common options are Coinbase Wallet (BASE pre-configured by default) and MetaMask. Both are free. Store your seed phrase offline; there is no way to recover a wallet without it.
Step 2: add the BASE network to your wallet
In MetaMask, go to "Add Network" and search for Base Mainnet, or visit chainlist.org to add it in one click. In Coinbase Wallet, no configuration is needed.
Network details if you need to add it manually:
- Network name: Base Mainnet
- RPC URL: https://mainnet.base.org
- Chain ID: 8453
- Currency symbol: ETH
- Block explorer: https://basescan.org
Step 3: get ETH on BASE
Three main options:
- Buy on Coinbase and withdraw to BASE directly (simplest for Coinbase users)
- Bridge from Ethereum mainnet via bridge.base.org (official bridge, 7-day withdrawal back to L1)
- Use an on-ramp like Coinbase Pay or MoonPay to buy ETH directly on BASE
Step 4: explore dApps
With ETH on BASE, you can trade on Aerodrome or Uniswap, lend on Aave or Morpho, hold stablecoins (USDC), and more. Every transaction costs a fraction of a cent.
Step 5: try managed DeFi portfolios
If managing individual DeFi positions feels complex, platforms like QINV Onchain (qinv.ai) offer automated crypto portfolios built directly on BASE, where underlying assets are held in a transparent on-chain vault.
The DeFi ecosystem on BASE
DEXs (decentralized exchanges)
Aerodrome Finance is BASE's leading DEX, with over $1 billion in deposits. It operates as an incentivized liquidity protocol where users earn rewards for providing liquidity. Uniswap V3 also runs on BASE with deep liquidity for major pairs.
Lending
Morpho and Aave V3 are the dominant lending protocols on BASE. Morpho grew 1,906% in TVL during 2025, driven by Coinbase wallet integrations that allow users to borrow USDC using ETH or cbBTC as collateral.
Stablecoins
USDC (issued by Circle, in partnership with Coinbase) is the dominant stablecoin on BASE. In October 2024, BASE captured 30% of all stablecoin transaction volume across Layer 2 networks.
AI agents and the creator economy
BASE is becoming a home for projects combining AI with blockchain. The Virtuals Protocol allows users to create and tokenize AI agents. Coinbase has identified the creator economy as a potential $500 billion opportunity and is positioning BASE as the infrastructure for it.
Risks and limitations
Centralized sequencer
BASE currently operates with a sequencer controlled by Coinbase. The sequencer is the component that orders and submits transactions. In practice, this means Coinbase could theoretically censor or delay transactions. Progressive decentralization of the sequencer is on the roadmap but has not been completed as of early 2026.
7-day withdrawal period
To move funds from BASE back to Ethereum mainnet via the official bridge, there is a 7-day waiting period. This is a fundamental property of Optimistic Rollups. Third-party bridges offer faster withdrawals, but introduce additional smart contract risk.
Smart contract risk
Every dApp on BASE is a smart contract that may contain vulnerabilities. Research protocols before depositing funds, and prefer projects with independent security audits.
Market volatility
BASE's TVL dropped from approximately $5.3 billion in January 2025 to around $3.9 billion in early 2026, reflecting broader crypto market conditions. Fluctuations are normal in rapidly growing ecosystems and should not be confused with protocol failure.
Disclaimer: this article is for educational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risks. Always do your own research before allocating capital.
Frequently asked questions
What is the BASE network?
BASE is a Layer 2 blockchain created by Coinbase, built on Ethereum using the OP Stack (Optimistic Rollup technology). It processes transactions much faster and cheaper than Ethereum mainnet while inheriting the same security. Launched in August 2023, it became the #1 L2 by DeFi TVL in January 2025.
Does BASE have its own token?
No. BASE uses ETH to pay gas fees. There is no BASE token. This simplifies onboarding: if you already hold ETH, you can use BASE immediately without buying any additional asset.
Is BASE safe to use?
BASE inherits Ethereum's security through the Optimistic Rollup mechanism, making the base infrastructure very secure. The main caveat is that the transaction sequencer is currently centralized (controlled by Coinbase). For individual dApps, security depends on each protocol's smart contracts and audits.
What is the difference between BASE and Ethereum?
Ethereum is the main blockchain (Layer 1); BASE is a secondary layer (Layer 2) built on top of it. BASE is orders of magnitude faster and cheaper (cent-level fees vs. dollars on Ethereum). Security is ultimately inherited from Ethereum via the rollup mechanism.
How do I transfer funds to BASE?
The most common path for new users is to buy ETH on Coinbase and withdraw it directly to the BASE network. Existing Ethereum users can use the official bridge at bridge.base.org to move assets from Ethereum mainnet to BASE.
What are the main projects on BASE?
The leading projects include: Aerodrome Finance (DEX, $1B+ in liquidity), Morpho (lending), Aave V3, Uniswap V3, USDC (stablecoin), and Virtuals Protocol (tokenized AI agents). QINV Onchain also operates on BASE, offering automated crypto portfolios with full on-chain transparency.
Can I use BASE without technical knowledge?
Yes. With a Coinbase account, you can access BASE-powered features directly from the Coinbase app or wallet. No coding or manual network configuration is required.
What happened to BASE's TVL in 2025?
BASE started 2025 at approximately $4–5 billion in DeFi TVL, surpassed Arbitrum One to become the #1 L2, and reached over $4.7 billion by mid-2025. It experienced normal volatility alongside the broader market but maintained its leading position among L2 networks.
Key takeaways
- BASE is a Layer 2 blockchain by Coinbase, built on Ethereum using the OP Stack
- Transactions are fast (
2 seconds) and cheap ($0.001–$0.05), with Ethereum-level security - No native gas token: uses ETH, same as Ethereum mainnet
- In 2025, BASE is the #1 L2 by DeFi TVL ($4.7B+) and generates 62% of all L2 revenue
- The ecosystem includes Aerodrome, Morpho, Aave V3, Uniswap, USDC, and more
- Main limitation: centralized sequencer (Coinbase-controlled, decentralization in progress)
- Ideal for users who want low-cost DeFi with the trust of a regulated, publicly listed company behind the infrastructure
Data sourced from L2Beat, DefiLlama, and Coinbase public reports. Last updated: February 2026. This content is for educational purposes and does not constitute financial advice.
Invest in DeFi on BASE: qinv.ai
