Coinbase’s Base to Launch Native Token to Stem Outflows
Coinbase-backed Base is set to issue a Base native token on its Layer-2 network to stem $4.6 billion in capital outflows and boost ecosystem stickiness. Despite leading with nearly one million daily active addresses, 148.8 transactions per second and over $50 billion in TVL, Base lacks a built-in economic moat. Token incentives will target protocols such as Aerodrome Finance, SeamlessFi, Friend.tech and Farcaster to reward liquidity providers, community governors and independent validators. Early-stage game and NFT projects will also benefit from lower gas fees. A successful Base native token issuance could convert speculative inflows into long-term commitments, accelerate decentralization by reducing reliance on Coinbase’s centralized sequencer and add hundreds of billions to Coinbase’s fully diluted valuation. Traders should monitor the Base native token emission schedule, vesting periods and governance proposals for potential short-term volatility and long-term bullish fundamentals.
Bullish
The planned Base native token issuance is likely bullish for Base’s token price. In the short term, token emission schedules and vesting cliffs may introduce volatility as markets price in supply increases. However, offering governance tokens to protocols like Aerodrome Finance and Friend.tech, and incentivizing independent validators, strengthens Base’s economic moat and accelerates decentralization. Over the long term, these measures should boost capital retention, convert speculative funds into committed deposits and enhance network security. By reducing reliance on Coinbase’s centralized sequencer and tapping into DeFi and SocialFi ecosystems, Base positions itself for sustainable growth, supporting a bullish outlook.