The optimistic CEO of Coinbase, a cryptocurrency exchange based in the United States, believes that layer-2 scaling solutions will revolutionize the crypto economy. During Coinbase’s first-quarter earnings call, Brian Armstrong expressed his belief that these solutions will enable a wide range of crypto use cases by reducing fees and speeding up transaction times. He compared layer 2 solutions to the transition from dial-up to broadband Internet, emphasizing their potential to drive innovation in the crypto economy.

Armstrong specifically highlighted Base, Coinbase’s layer-2 solution for Ethereum (ETH), which aims to onboard billions of users into the web3 ecosystem. He stated that 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 anywhere in the world. In the first quarter, developer activity on Base increased eightfold, and in the past 30 days, Base has processed over twice as many transactions as the entire Ethereum network on layer 1. By implementing protocol upgrades, Coinbase has made Base faster and cheaper to use, reducing fees by approximately 80%, with fees often falling below $0.01.

Regarding Bitcoin (BTC), Armstrong noted that spot market exchange-traded funds have revitalized the entire crypto market. He believes that the attention garnered by ETFs generates energy and interest across various products in the industry. It is important to note that this article was generated by Midjourney and is not investment advice. Investors should conduct thorough research before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Transfers and trades are conducted at one’s own risk, and any resulting losses are the responsibility of the individual. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, nor does it provide investment advice.