Coinbase is admitting it lost touch with its most loyal users. This week the exchange said it has drifted away from crypto-native customers and plans to win them back with a relaunch of the Base App — an 'everything app' for onchain users that includes a 3.35% APY on USDC deposits and gas sponsorships.
Acknowledging the distance
The admission is a rare moment of self-reflection from a major exchange. Coinbase built its early reputation on serving the crypto-native crowd — the traders, developers, and degens who live onchain. But as the company pushed into institutional products, ETFs, and mainstream compliance, that core user base felt left behind. The company now says it hears that feedback and is acting on it.
The Base App relaunch
The centerpiece of the effort is a revamped Base App, which Coinbase describes as an 'everything app' for onchain users. The app is being rebuilt from the ground up to cater to the people who actually use crypto, not just buy and hold it. The relaunch includes two concrete features that matter to power users: gas sponsorships and a 3.35% APY on USDC deposits.
Gas sponsorships mean users won't have to hold ETH in their wallets just to pay transaction fees on Base. That's a friction point that has kept casual users away from L2s. The USDC yield, meanwhile, is competitive with what DeFi protocols offer, but wrapped in a simple, custodial experience.
Winning back trust
Rebuilding trust with crypto-native users won't be easy. Many of them left for self-custody wallets, decentralized exchanges, or rival L2s after Coinbase's compliance push and the regulatory uncertainty of recent years. The Base App relaunch is a direct bet that convenience and yield can bring them back.
The timing isn't accidental. Base has grown into one of the most active L2s by transaction volume, and Coinbase needs to keep that momentum. If the relaunch works, it could turn Base into a hub for onchain activity — not just a Coinbase side project. If it doesn't, the distance between the exchange and its original users will only grow.
For now, the app is rolling out to users this week. The real test will be whether the crypto-native crowd actually downloads it.
