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OKX, a popular crypto exchange for derivatives traders, has launched an ambitious new layer 2 platform dubbed the X Layer – built using CDK – as it connects 50m users to Ethereum, could it be new Base chain?
The Ethereum layer-2 scene is heating up. Following in the (genius) footsteps of Coinbase’ base chain, OKX, a crypto exchange popular among derivatives traders, has launched its off-chain platform dubbed the X Layer.
Hiya creators, builders, founders 👩💻👨💻
🚨 We're opening X Layer Mainnet to the Public 🚨
With +200 dApps building, X Layer is now accessible to everyone, not just developers.
Experience the power & security of our zkEVM L2 network firsthand.
Start building:… pic.twitter.com/K59dg0sJrG
— X Layer (@XLayerOfficial) April 16, 2024
X Layer Layer 2 By OKX Is Live: Could it be Next Base Chain?
According to launch details on April 15, the layer-2 platform is built using Polygon‘s technology.
Through the Polygon Chain Development Kit (CDK), OKX is deploying the X Layer, promising users lower fees and higher levels of interoperability when deploying or interacting with decentralized applications (dApps).
The key benefit of this arrangement is that developers won’t have to make code changes when migrating from Ethereum. At the same time, OKB receives even more utility since it will be used to pay fees.
The X Layer also taps into Polygon’s Aggregation Layer (AggLayer), meaning that the platform will become more interoperable and liquid over time. The AggLayer will serve as a bridge connecting all layer-2 platforms leveraging Polygon’s CDK.
According to OKX, there are over 50 dApps on the X Layer. Some include LayerZero and the leading decentralized exchange (DEX) on Polygon, QuickSwap.
Will X Layer Follow Base Chain And Become A Meme Coin Hub?
Analysts are now drawing comparisons between the X Layer and Base, another layer-2 backed by Coinbase, a crypto exchange.
Although Base doesn’t use the Polygon CDK, it has since expanded to be one of the largest layer-2 platforms by total value locked (TVL). By April 16, the platform managed over $5 billion of assets, per L2Beat data.
(Source)
Most of these assets include meme coins like Brett and Degen. This trend was expected since the first project on Base was a meme coin, Bald.
Base developers have yet to launch a token, following the likes of Arbitrum (ARB) and Optimism (OP).
Given that OKB token will be central to the X Layer, the layer-2 platform will likely find adoption faster amongst retail and derivative traders. Investors and speculators will likely be drawn to the platform, holding the token in anticipation of price gains.
(OKBUSDT)
So far, OKX is up +6% in the past trading day, and trading volume, a marker of interest, has soared 4X since the launch of the X Layer.
Going by the recent trends, it is likely that X Layer will continue to expand by TVL, further pumping OKB prices.
If past trends on layer-2 activity, including at Base, guide issuers, they will race to X Layer to deploy meme coins.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
