This exchange just launched L2, will it hit Coinbase’s base?

In the year On April 16, 2024, crypto exchange OKX announced the launch of a Layer 2 (L2) network mainnet called X Layer. Built on Ethereum and powered by Zero Knowledge (ZK) technology, X Layer integrates with OKX Exchange and OKX Web3 Wallet.

It uses Polygon's Chain Development Kit (CDK) and aims to reduce transaction costs and improve exchange users and wallet services.

Can the X layer quickly bridge the gap with the base and conductor L2s?

Haider Rafique, chief marketing officer of OKX, looks at the X layer together with the Web3 infrastructure.

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

During X Layer's testnet phase, OKX onboarded more than 200 decentralized applications (dApps). Current apps include approximately 40 DeFi, 20 Infrastructure, 12 Bridges, 5 Development Tools, 16 Wallets, 10 NFT & Gaming, 10 SocialFi and many other dev-tools dApps.

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Additionally, popular dApps such as Curve, QuickSwap and LayerZero are among those building on the new network. Commenting on the launch, Polygon Labs CEO Mark Boyron expressed his optimism about X Layer's potential.

“X Layer = The majority of the world's population is not limited by weak rules and is ready to have fun,” Boiron wrote on X (formerly Twitter).

OKB, the native token of OKX, is used to pay for gas bills on the X Layer.

The launch of the X Layer follows the recent trend of large exchanges developing their own L2 solutions. Notably, Coinbase launched the Base Network, which quickly gained a lot of attention.

BeenCrypto reports that Base recorded a 70% increase in Total Value Locked (TVL) in just one week. It quickly caught up with established L2s like Arbitrum One and Optimism.

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

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However, OKX's L2 launch coincides with the recent departure of several CEOs, including Tim Biu and Wei Lan. These exits raise questions about the company's organizational stability.