Coinbase Base: The New Darling of Web3 Consumer

Hey, it’s Marc. ✌️

Today, let's dive into one of the most exciting Layer 2 chains out there: Base.

What happened:

• Coinbase has partnered with Stripe to make crypto transfers faster and cheaper with integration into the Base chain, enabling instant crypto purchases with credit cards and Apple Pay.
• Moreover, Farcaster, one of the leading decentralized social media platforms, has introduced Warpcast Pay on the Base network, to make on-chain payment easy and seamless. 

Why it matters: Coinbase has over 110M registered users. It’s and is one of the most active and trusted exchanges in the US.

Stripe’s integration on Base enables instant US fiat-to-crypto onramp with USDC with cheaper transfers to 150+ countries. With a 21% share of the global payment processing market, Stripe ranks as the second most widely used payment solution in the world.

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The big picture: Base, the Ethereum-compatible layer 2 blockchain launched by Coinbase in July 2023, is building an ecosystem across commerce, payments, gaming, creator, social, and more.

Base’s rapid user growth (5x since Jan 2024) was fueled by cheap and fast transaction and popular consumer projects like Friend.tech and DEGEN.

Be smart: Coinbase could potentially earn up to hundreds of millions in revenue from Base in 2024 through various fees.

Easy onboarding: In 2023, Coinbase unveiled Wallet as a Service (WaaS) allowing companies to create and deploy customizable on-chain wallets directly to their users. Later, they introduced “Smart Wallets” in June 2024, which makes it easier for Coinbase users to come on-chain through Base and other networks.

By the numbers:

• Coinbase has an average of 8M monthly transacting users and holds 18% of the total retail volume. 
• Base had over 7M daily users and a network TVL of more than $1.57B.

Key facts you should know: 

• Ecosystem Growth: Base supports various sectors, aiming to build decentralized financial infrastructure for brands to transition Web2 users to Web3.
• User-Friendly and Cost-Effective: Base is developer-friendly, low-cost, and leverages Coinbase's user base and reputation.
• Partnerships and Integrations: Integrations with major platforms like Stripe enable faster and cheaper transfers, while collaborations with Farcaster enhance social media engagement and payments.

With the ongoing season of “On-chain Summer”, Base is focused on building a complete suite for easy and efficient adoption through consumer activities like placing an order and payment.

Integrating with Web3 native apps: Base has integrated payments with Farcaster, adding a new layer of commerce to the app. Farcaster has a feature called “frames” that let people build small apps that run inside of posts (called “casts”). Currently, Farcaster Frames includes on-chain activities like airdrops, NFT minting, onboarding, and payments. 

However, mainstream adoption through Base can be slower compared to tools like Solana's Blinks, which leverage social media platforms like X.

While Solana uses Blinks and TON leverages Telegram for payments, Base competes by offering comprehensive payment solutions to millions of Coinbase users willing to buy crypto. 

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So what? 

Brands have a significant opportunity to leverage Base's growing ecosystem and Coinbase's massive user base to seamlessly integrate crypto payments and Web3 experiences into their existing products and services: 

• Brands can easily enable customers to pay directly with cryptocurrencies like USDC, ETH, or other Base-supported tokens. This can be done through Coinbase Commerce API or integrating with other payment processors that support Base.
• Using Coinbase's "On-Ramp" solutions, brands can allow customers to convert their fiat currency (USD, EUR, etc.) into cryptocurrencies directly on their website or app.
• Integrating Coinbase's "Smart Wallets" can enable a smoother user experience for onboarding and managing crypto assets. 

By doing so, they can tap into the expanding world of Web3, attract a new generation of crypto-savvy consumers, and potentially drive significant growth. 

That’s it for now. 

Talk soon,
Marc

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