In a bold move to compete in the evolving cryptocurrency landscape, U.S.-based crypto exchange Kraken is secretly developing its own layer-2 (L2) blockchain. This strategic endeavor aims to garner support from prominent industry players and position itself as a formidable rival to Coinbase’s Base L2, which was introduced earlier this year. Kraken is currently in discussions with leading blockchain companies, including Polygon, Nil Foundation, and Matter Labs, for potential development partnerships.
Kraken’s Ambitious L2 Project Surfaces
Insiders with knowledge of the matter have revealed Kraken’s ambitious plan to launch a new layer-2 blockchain, yet the exchange remains tight-lipped about the specifics. When approached for comments, a Kraken spokesperson declined to divulge detailed information but affirmed their commitment to addressing emerging challenges and opportunities within the industry, stating, “We’re always looking to identify and solve for new industry challenges and opportunities.”
Coinbase’s Base L2 Sets the Pace in the L2 Arena
Back in February 2023, Coinbase took a significant step in the world of layer-2 blockchains with the announcement of the initial testnet for Base. Built on the Ethereum network, Base was designed to provide a secure, cost-effective, and developer-friendly platform for building decentralized applications (dApps). In a later development, Coinbase’s CEO, Brian Armstrong, officially launched Base in August, emphasizing its role in accelerating the global adoption of a decentralized financial system and increasing economic freedom.
Coinbase’s Base L2 quickly gained recognition as the fastest-growing layer-2 network. Within just 11 days of its launch, Base boasted an impressive 1 million unique addresses. Even before its official launch, the platform had already accumulated 523,000 addresses through unofficial bridges.
Notably, earlier layer-2 solutions like Arbitrum and Optimism took 303 and 191 days, respectively, to reach the milestone of 1 million addresses, in stark contrast to Base’s rapid achievement of the same milestone.