Former member of Coinbase Ventures: The initial market value of the Base token may be around $20 billion, and the token functions may be similar to ETH

ChainCatcher news, according to market news, Coinbase's L2 project Base has announced that it is exploring the possibility of issuing a token, marking a significant shift from its previous stance of not planning to issue a token.

Former Coinbase Ventures member Ryan Ye predicts that the initial market capitalization of the Base token could be around $20 billion, with the potential to rise to $40 billion to $50 billion. He believes that the token issuance will significantly drive the development of the Base ecosystem, attracting more developers and users. Ryan speculates that the token distribution may include: 20%-40% allocated to Coinbase, about 20% for an independent community treasury, with the remainder distributed to the community through airdrops or public sales.

He also pointed out that the Base token's functions may be similar to Ethereum's ETH, with part of it used for on-chain fee burning, while it could also become a core liquidity asset in DeFi. Additionally, Base has integrated with Solana on the testnet. Ryan believes this indicates that Base acknowledges Solana as its biggest competitor and is attracting developers through this move.

He noted that the competition between Base and Solana mainly focuses on user culture and DeFi liquidity, with Base leaning more towards DeFi liquidity, while Solana excels in user experience and consumer culture.

Related reading: Having repeatedly stated that it would not issue a token, why has Base changed its mind now?