This Exchange Just Launched Its L2, Will It Beat Coinbase’s Base?

On April 16, 2024, crypto exchange OKX announced the mainnet launch of its layer 2 (L2) network named X Layer. Built on Ethereum and powered by zero-knowledge (ZK) technology, X Layer integrates with the OKX Exchange and the OKX Web3 Wallet.

It utilizes Polygon’s Chain Development Kit (CDK) and aims to reduce transaction costs and improve scalability for exchange users and its wallet services.

Can X Layer Swiftly Bridge the Gap with Base and Leading L2s?

OKX Chief Marketing Officer Haider Rafique envisions X Layer as integral to Web3 infrastructure.

“We envision X Layer and other Layer-2 chains as the highway infrastructure of the Web3 world, with dApps as the marketplaces and self-hosted wallets as the vehicles that take you there,” Rafique stated.

During X Layer’s testnet phase, OKX onboarded over 200 decentralized applications (dApps). Current applications include roughly 40 DeFi, 20 infrastructures, 12 bridges, 5 growth tools, 16 wallets, 10 NFT and Gaming, 10 SocialFi, and several other dev-tooling dApps.

Read more: A Beginner’s Guide to Layer-2 Scaling Solutions

Moreover, popular dApps like Curve, QuickSwap, and LayerZero are among those that are building on the new network. Commenting on the launch, Polygon Labs CEO Marc Boiron expressed optimism about the potential of X Layer.

“X Layer = Majority of the world’s population unrestricted by poor regulations and ready to have some fun,” Boiron wrote on his X (formerly Twitter).

OKB, the native token of OKX, will be used to pay for gas fees on the X Layer.

The launch of X Layer follows a recent trend of large exchanges developing their own L2 solutions. Notably, Coinbase launched its Base network, which quickly gained significant traction.

BeInCrypto reported that Base recorded a 70% increase in total value locked (TVL) in just one week. It caught up quickly with established L2s, such as Arbitrum One and Optimism.

According to L2Beat data, Base currently ranks third in total value locked (TVL), directly below Arbitrum One and Optimism. Base has $5.29 billion in TVL and 14.17% of the market share at the time of writing.

Read more: Layer-2 Crypto Projects for 2024: The Top Picks

However, OKX’s L2 launch coincides with the recent departure of several key executives, including Tim Byun and Wei Lan. These exits raise questions about the company’s organizational stability.