Gate Joins Coinbase and Kraken in Layer 2 Race
Crypto exchange Gate has unveiled its own Layer 2 blockchain, Gate Layer, built with Optimism’s OP Stack. The move mirrors similar strategies by Coinbase and Kraken, which have launched their own networks to expand beyond centralized trading into broader Web3 ecosystems.
In a statement on Thursday, Gate described Gate Layer as the backbone of its “All in Web3” strategy, aimed at delivering faster transactions, lower fees, and new tools for developers and traders. The network will power a perpetuals trading hub and a no-code incubator for token launches, reflecting the exchange’s ambition to evolve from a trading platform into a full-scale blockchain ecosystem.
Building on Gate’s Foundations
“With GT and GateChain as the foundation, we’re aligning infrastructure, liquidity, and tokenomics under one roof — creating a sustainable network where innovation and adoption scale together,” Gate CEO Dr. Han Lin said.
The company has been moving steadily toward on-chain infrastructure since 2019, when it launched GateChain following a $64 million initial exchange offering. Gate Layer will now use GateChain as its settlement layer, while also introducing a staking mechanism tied to the exchange’s native token, GateToken (GT).
Gate has emphasized GT’s dual deflationary model, which relies on token buybacks and burns to manage supply. According to the exchange, more than 60% of GT has already been burned.
Gate Layer’s Technical Specs
Gate says its new network can process 5,700+ transactions per second with one-second block times, offering “significantly lower” fees than other Layer 2 solutions. Cross-chain functionality will be enabled through LayerZero, connecting Gate Layer to Ethereum mainnet and other L2s.
The design follows the playbook of Coinbase’s Base, launched in 2023, which has become a successful revenue stream and user acquisition channel. Other major players like Kraken and Uniswap have also tapped Optimism’s technology, contributing to the growth of the Superchain ecosystem, a set of interoperable chains built on OP Stack.
GT Token and Market Performance
At the time of writing, GT trades at $15.93, down 3.4% on the day, with a market cap of $1.9 billion and 119.4 million tokens in circulation, according to price page. Its all-time high of $25.94 was recorded earlier this year.
The token serves multiple roles in Gate’s ecosystem, from staking to gas fees, and its integration with Gate Layer is central to the company’s push toward on-chain infrastructure.
Gate’s Market Position
Founded in 2013, Gate has historically operated as a mid-sized exchange but now ranks fifth globally by daily trading volume, according to CoinGecko. The exchange reported about $96 billion in trading activity in September 2025.
Despite growth, Gate has faced challenges. Earlier this year, its futures desk suffered downtime during a surge in trading, prompting the company to issue full compensation to affected users.
