Coinbase Global Inc COIN has expanded its trading features to support token swaps across two new blockchains.
What Happened: In a blog post on Monday, the cryptocurrency exchange said it had added support for token swaps on Avalanche AVAX/USD and Binance’s BNB Chain BNB/USD.
One Wallet. Even more networks. Thousands of tokens.
— Coinbase Wallet (@CoinbaseWallet) May 23, 2022
The addition of these chains means that Coinbase Wallet users will now be able to trade a greater variety of tokens. Until recently, users could only make token swaps on Ethereum ETH/USD and Polygon ETH/USD.
Why It Matters: Coinbase’s main exchange platform has listed just 174 tokens – significantly lower than most of its counterparts in the industry.
A bulk of trading activity on Coinbase is centered around Bitcoin BTC/USD and Ethereum ETH/USD and several popular altcoins.
As such, some traders would have to look to other platforms or decentralized exchanges (DEXes) when looking to swap lesser-known low cap altcoins.
Coinbase Wallet’s built-in DEX feature enables users to transact directly with each other. The wallet’s trading feature compares rates across multiple exchanges using the 0x API.
“To trade tokens on a different network, simply tap the network icon in the top right corner of the Wallet mobile app, or click the network name in your browser extension, and select the network you’d like to make your swap on,” said Coinbase Senior Product Manager Catherine Shyu Sullivan.
“Before swapping on a network, make sure you have the native token of the network you wish to make a swap on in your wallet to cover the network fees. For example, for a swap on Avalanche, you will need some AVAX in your wallet.”