The CEO of Coinbase, a cryptocurrency exchange based in the US, holds a positive outlook on the potential of layer-2 scaling solutions to revolutionize the crypto economy. During Coinbase’s earnings call for the first quarter, Brian Armstrong expressed his belief that these solutions would enable a wide range of crypto use cases by reducing fees and speeding up transaction times.

Armstrong drew a parallel between layer-2 solutions and the transition from dial-up to broadband internet, emphasizing the scalability benefits they offer to blockchains. He anticipates that this scalability will drive the emergence of numerous new use cases in the crypto economy.

The CEO then turned his attention to Base, Coinbase’s Ethereum layer-2 platform designed to onboard billions of users into web3. He highlighted how Base has significantly decreased transaction fees and confirmation times, bringing them closer to their goal of making the average crypto transaction take less than one second and cost less than $0.01 globally.

Base experienced a substantial increase in developer activity during the first quarter, and in the past month, it has processed more than twice the number of transactions as the entire Ethereum network on layer 1. Coinbase achieved this by implementing protocol upgrades that have made Base faster and cheaper to use, resulting in an 80% reduction in fees. As a result, their fees frequently fall below $0.01.

Regarding Bitcoin, Armstrong credited spot market exchange-traded funds for revitalizing the entire crypto market. He noted that while ETFs attracted significant attention, the focus on cryptocurrency as a whole generates enthusiasm and interest across various industry products.

In conclusion, Coinbase’s CEO holds an optimistic outlook on the transformative potential of layer-2 scaling solutions and believes that Base, their Ethereum layer-2 platform, will play a crucial role in bringing more users into the crypto space. Additionally, Armstrong recognizes the positive impact of exchange-traded funds on the crypto market, highlighting their ability to generate energy and interest in the industry.