Coinbase Solana Support

The Coinbase exchange is moving to other blockchain networks. The company has released an announcement saying that transacting on the Ethereum network was becoming expensive and that people were switching to more sustainable blockchains.

Coinbase has now launched a service that will allow its customers to send and receive cryptocurrencies using several networks such as Polygon and Solana.

Coinbase launches on-chain Solana and Polygon

The Coinbase announcement referred to the weaknesses of the Ethereum network that were making users look for cheaper and faster blockchains such as Polygon and Solana. However, switching to these blockchains posed challenges because funding wallets were complex and needed much time.

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The exchange is stepping in to lower entry barriers into scalable blockchains and ensure they share the same benefits as leading networks such as Ethereum. The network would allow people to convert fiat currencies into crypto and fund their cryptocurrency wallets in the shortest time.

“Over the next month, eligible Coinbase and Coinbase Exchange customers will be able to send and receive ETH, MATIC, and USDC on Polygon, and they’ll be able to send and receive USDC on Solana. Over time, we’ll add support for more tokens and more networks,” Coinbase added.

The Ethereum network has been facing stiff competition from more scalable networks such as Solana. While Ethereum has a large number of decentralized applications (DApps), it usually experiences congestion during periods of increased activity, and the gas fees tend to skyrocket to major highs. However, Polygon and Solana are scalable solutions for users.

Ethereum is expected to solve the issues of congestion and high gas fees with the network transition to PoS after the merge. The process is expected to happen this year.

Coinbase is putting up a stiff competition

Coinbase is one of the largest exchanges and supports major tokens and low cap cryptos. The recent move is in line with a series of efforts that Coinbase has made to remain competitive during the ongoing bear market.

Binance US recently launched zero-fee Bitcoin trading, and the Binance Vs Coinbase competition now seems to be in full gear. Coinbase said that it wanted its users to explore Web3. However, it noted that the Web3 sector still has challenges because it was not easy for users to move digital assets across blockchains as they had to rely on blockchain bridges.

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Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.