Coinbase has launched wrapped versions of Cardano ADA and Litecoin LTC tokens on its layer-2 network, Base. The exchange disclosed this on X, months after it first said that the altcoins would have wrapped assets.
According to the post, cbADA and cbLTC are ERC-20 tokens fully backed by ADA and LTC in Coibase custody. By enabling wrapped versions of these tokens, the exchange wants to enable their holders to use them within the Base ecosystem.
It said:
“cbADA and cbLTC are now live on @base. cbADA and cbLTC are ERC-20 tokens backed 1:1 by ADA and LTC held in custody by Coinbase.”
The announcement also included the Base contract addresses for the two tokens, which Coinbase Assets said are necessary as bad actors launch other tokens to mimic them. The address for cbADA is 0xcbADA732173e39521CDBE8bf59a6Dc85A9fc7b8c, while the cbLTC address is 0xcb17C9Db87B595717C857a08468793f5bAb6445F.
Interestingly, Coinbase shared proof of reserves for cbADA, showing that 2.93 million ADA tokens have already been wrapped up on the network.
With this launch, cbADA and cbLTC join other wrapped assets on Coinbase, including Bitcoin cbBTC, XRP cbXRP, and Dogecoin cbDOGE. These assets, apart from cbBTC, are only available on the Base network, while the wrapped Bitcoin is available on other networks, including Solana, Ethereum, and Arbitrum.
Coinbase earns plaudits for its approach to L2
Meanwhile, the recent launch has attracted the praise of many in the crypto community, particularly for Base’s open approach to enabling other assets to take part in its decentralized finance ecosystem.
Unlike most L2 networks, including the newer Ink network from Kraken, Base does not have a native token. Instead, the platform has focused on bringing as many people on-chain as possible, and wrapping assets is part of the many initiatives the exchange has implemented to make this happen.
As Base creator Jesse Pollack said, “Base is for everyone.”
So far, that approach has paid off for the network, which now dominates the transaction count on the Ethereum ecosystem while also attracting significant liquidity. According to Growthepie, Base has seen 13.17 million unique addresses in the last seven days, far above Ethereum mainnet with 2.13 million and Arbitrum with 1.2 million.
With the massive number of users, it also leads in transaction count with 7.91 million transactions today alone, while coming second in total value secured with $12.39 billion. Unsurprisingly, Base is also one of the most profitable L2 networks with over $5 million in revenue in the last 30 days.
Interestingly, this might be the beginning for Base, given the massive interest among builders looking to deploy on the network. Base’s Demo Day recently saw over 900 projects pitched from all over the world, with eleven out of the top 77 pitching teams coming from Africa.
Analysts bullish on Coinbase’s importance in the crypto ecosystem
With the success of Base Network and other Coinbase products, the exchange looks poised to dominate the crypto ecosystem. This is the opinion of Bernstein analysts, who recently increased their price target for the exchange stock COIN to $510 from the previous $310.
According to the analysts, Coinbase has maintained its market share even in the face of competition and will likely continue to do so even if TradFi brokerage firms get involved in crypto trading. They particularly mentioned how Coibase connects crypto’s retail, institutional, and on-chain infrastructure, noting that no other exchanges have been able to do so at such a scale.
Meanwhile, Coinbase continues to expand and recently secured a Market in Crypto Assets (MiCA) license in Luxembourg, allowing it to operate in all 27 European Union countries. Unsurprisingly, COIN has been a top performer in recent days, with over a 38.47% rise in just five days.
The stock is trading at $351, adding more than 40% in value year-to-date.
