Goldfinch Gains 14% as Community Approves Deployment on Coinbase's Base L2
The Goldfinch community has voted to deploy their DeFi lending protocol on Coinbase's scalable layer-2 blockchain, Base. This strategic move is aimed at leveraging Base's lower transaction fees to increase user adoption. Goldfinch, which was previously only available on Ethereum's network notorious for high gas fees, is expected to reach more users through Coinbase's substantial customer base. The news of the approval sent the protocol's native token GFI's price up by 14% to $1.74. Following community agreement, the protocol will undergo a soft vote, code drafting, auditing, and eventually deployment on Base by the governance council.
Bullish
The approval and planned deployment of Goldfinch on Base L2 are likely to be seen as bullish by traders. L2 solutions are widely recognized for reducing transaction costs and improving scalability, which can lead to greater adoption of DeFi platforms. Coupled with the increase in GFI token price following the announcement, and Coinbase's reputation and substantial user base, the market may expect upward momentum as the deployment could attract more users and potentially increase transaction volumes on Goldfinch.