Coinbase Diversifies Options with Polygon and Solana

Coinbase Diversifies Options with Polygon and Solana
  • Coinbase exchange launches the first crypto derivatives product that Nano Bitcoin features (BIT) on June 27.
  • The worldwide volume of the crypto derivatives market is $3T.

On Thursday, Coinbase American-based crypto exchange platform announced that it will allow users to send and receive cryptocurrency on a multiple-networks, starting with Polygon and Solana.

In the upcoming month, registered Coinbase users will be able to transfer and receive Ethereum (ETH), Polygon (MATIC), USDC on Polygon, and USDC on Solana. For the first time, Coinbase has made it possible to transfer and receive these assets on a Layer 2 (L2) or sidechain.

Users Can Access Polygon and Solana Easily 

According to Coinbase, the connection would make it fast and easy for users to fund their Polygon and Solana wallets and convert fiat currency to cryptocurrency.

For both ordinary users and institutions, sending cryptocurrency on Ethereum has gotten more and more expensive. Gas costs, which are paid to miners to validate Ethereum transactions, have increased dramatically in parallel with the rise in blockchain usage, pricing out millions of potential users. 

Sending small quantities of cryptocurrency from an exchange like Coinbase to a self-custodial wallet like Coinbase Wallet can cost over $10 in gas fees on Ethereum, and lending out larger quantities of cryptocurrency on protocols like Aave can cost over $100 in gas. 

Over the past 18 months, less expensive networks like Polygon and Solana have been more popular due to these high gas prices.

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