Is Base set to be Coinbase's revenue game-changer? One analyst predicts Base may double Coinbase's revenue in 2023, driven by the innovative Ethereum Layer 2 scaling solution. Last week Coinbase announced the testnet launch of its new native Ethereum Layer 2 network Base. According to the official blog post, Base offers a secure, low-cost, developer-friendly way to build decentralized applications. But how will this translate to Coinbase's bottom line?

The optimistic forecast hinges on Base's ability to attract a significant portion of Ethereum's DeFi activity. If Base successfully captures market share and facilitates high transaction volumes, the increased user engagement could lead to substantial revenue streams for Coinbase, exceeding current expectations. In the third quarter of 2025, Coinbase reported $674M in total revenue and an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $181M. Consumer transaction revenue doubled from the previous quarter, reaching $935.2 million, and volume was up over 93%, to $56 billion. Meanwhile, institutional trading, while important, isn't the primary driver of this potential doubling.

While official projections are scarce, the analyst's prediction isn't unfounded. Base's integration with the Coinbase ecosystem and its focus on user-friendliness position it as a strong contender in the Layer 2 space. However, competition is fierce, with established players like Arbitrum and Optimism already dominating the market. The success of Base and its impact on Coinbase's revenue will depend on its ability to differentiate itself, attract developers and users, and overcome regulatory hurdles. The key factor will be usage and developer adoption leading to transaction volume, which could potentially realize the analyst's prediction that Base may double Coinbase's revenue in 2023. It remains to be seen if Base can live up to the hype, but its potential impact on Coinbase's future is undeniable.