Optimism Token Surges 6.5% as Coinbase Builds Its Layer 2 on the Protocol

OP is the native token of the Optimism protocol, a layer 2 scaling solution for Ethereum that launched last year. It is currently trading at $3.04 after the currency base announcement went through the roof.

The coinbase layer 2 blockchain, correctly named base, will have no native token, unlike other layer 2 blockchains like polygon (matic). Matic trading is not changed much after the ad.

Whilst the first phase of Base will be a testnet, it's expected that the first decentralized exchange, lending protocol and decentralized apps (dapps) will perform well once the mainnet is live, as similar products surged in volume on protocols like Arbitrum, Polygon and and Optimism.

It is not the first incursion of the currency base far from being a typical trade. Last year it opened its NFT marketplace, although activity has struggled to pick up pace and it continues to fall behind competitors OPENSEA and LooksRare, according to data from Dune Analytics.