Ethereum News Today: Coinbase Launches Base App, Integrating Social and Trading Features on Ethereum Layer 2

Coinbase has introduced the Base App, a rebranded version of its former Coinbase Wallet, designed as an integrated social and trading platform. The new application combines various functionalities, including token trading, real-time payments, decentralized identity, mini-apps, and social media features, all anchored on its Ethereum Layer 2 network, Base. The Base App was announced at Coinbase’s "A New Day One" event on July 16 and is now available in beta for waitlisted users.

The rollout of the Base App represents a significant shift for Coinbase, moving beyond conventional wallets into a consumer-facing interface for onchain applications. The company aims to position the platform as an accessible gateway to the broader decentralized web, although it remains closely tied to Coinbase’s infrastructure and monetization strategies.

At the core of the Base App is a social feed powered by the Farcaster protocol, enabling users to post content, tokenize posts via the Zora platform, and receive tips or payouts for top-performing posts. The feed also allows users to track their friends’ trades in real time and swap tokens within the interface, eliminating the need to jump between apps or browser extensions. Additionally, the app supports hundreds of embedded mini-apps, ranging from games and AI chatbots to DeFi tools and prediction markets. It introduces a new one-tap USDC payment system called Base Pay, which supports near-instant NFC-based payments and Shopify merchant integration. Users receive a smart contract-based Base Account upon signing up, giving them a portable wallet identity that can interact across apps and chains. Messaging is handled via the encrypted XMTP protocol, allowing for peer-to-peer conversations, financial transactions, and AI agent interactions within the same environment.

While Base App rewards and USDC cashback incentives are currently targeted at U.S.-based users, these features won’t be available in the European Union or Canada due to local regulatory constraints. The app also does not yet offer full open access, with the beta limited to waitlisted users as the company works through phased onboarding. The company’s statement emphasized its goal of creating a seamless interface for crypto-native activities without compromising user experience. However, critics have pointed to potential centralization issues, as Coinbase’s growing ecosystem increasingly directs users into services it hosts or partners with directly.

Coinbase introduced a new three-pronged model for Base: Base Chain (Ethereum Layer 2 scaling solution), Base Build (developer infrastructure and tooling), and Base App (consumer interface). This segmentation echoes past Web2 platform strategies but aims to decentralize user control gradually. The launch follows Coinbase’s acquisition of the leadership team behind decentralized options protocol Opyn, signaling a potential expansion into onchain derivatives trading. Additionally, Coinbase’s partnership with Perplexity AI is expected to provide real-time blockchain analytics and help index the vast array of applications within the Base ecosystem.

The app’s debut arrives amid growing pressure for centralized exchanges to show their relevance in a DeFi-heavy world. It also reflects Coinbase’s broader ambition to extend its influence beyond exchange services into identity, commerce, content, and developer tools. The company has openly embraced a hybrid strategy of supporting open protocols while tightly integrating user-facing interfaces under its own brand. Meanwhile, Coinbase’s U.S. regulatory posture remains precarious, as the firm continues to face an ongoing SEC lawsuit over its staking and token listing practices. However, with U.S. lawmakers recently advancing pro-crypto legislation, sentiment may be improving. A consumer-focused app that anchors U.S. dollar-backed stablecoin payments and Layer 2 trading could appeal to both users and regulators as a compliant onchain alternative.

Coinbase’s Base App is entering a competitive landscape that includes Web3-native efforts like Uniswap’s mobile wallet, OKX’s multi-chain DeFi interface, and Solana’s native integrations. However, Coinbase’s access to fiat onramps, centralized exchange liquidity, and regulatory licenses gives it a unique advantage in onboarding mainstream users. Still, analysts have noted that the line between decentralization and vendor lock-in is increasingly blurry. The Base App effectively replicates a Web2-style user experience within a Web3 framework, raising questions about how much sovereignty users retain when operating within a vertically integrated platform. Coinbase has not yet commented on whether the Base App will support other chains or assets beyond Base and Ethereum. The app’s focus on USDC also aligns with Coinbase’s commercial stake in Circle, the stablecoin’s co-issuer.

The Base App launch signals Coinbase’s intention to position itself as a central player in the onchain economy. Whether users will embrace this all-in-one interface as a truly decentralized experience or see it as another walled garden remains to be seen. What’s clear is that Coinbase is no longer content being just a trading venue. With Base App, it wants to be the operating system for how everyday users engage with crypto, from earning tips on posts to executing smart contract interactions without ever leaving a mobile interface.