Former member of a certain exchange's Ventures: Base token's initial market cap may be around $20 billion, with token functionality possibly similar to ETH.

ChainCatcher reported that, according to market sources, the L2 project Base under a certain exchange has announced that it is exploring the possibility of issuing a token. This move marks a significant shift from Base's previous stance of never planning to issue a token.

Former member of the exchange's Ventures, Ryan Ye, predicts that the initial market capitalization of the Base token could be around $20 billions, with the potential to rise to $40 billions to $50 billions. 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 allocation may include: 20%-40% to the exchange, about 20% for an independent community treasury, and the remaining portion distributed to the community through airdrops or public sales.

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

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

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