The goal of Gate Layer, a Layer 2 blockchain based on OP Stack with GT as its only gas token, is to increase transactions, reduce expenses, and compete with exchanges such as Coinbase's Base.

In a significant update to the GT (GateToken) ecosystem, cryptocurrency exchange Gate has introduced Gate Layer, a proprietary Layer 2 blockchain intended to increase transaction throughput and lower costs. In an email message on Wednesday, the business stated that Gate Layer is anchored by GateChain as its settlement layer and is built on the OP Stack, making it completely interoperable with Ethereum.

With the introduction of tools like Perp, a perpetuals hub with CEX-level liquidity; Gate Fun, a no-code incubator for token launches; and Meme Go, a real-time cross-chain meme token tracker, Gate is establishing Gate Layer as the foundation of its "All in Web3" approach. As part of the change, GT will continue to use its dual burn model and be the only gas token for Gate Layer. So far, around 180 million GT have been burnt, nearly 60% of the initial supply.

Gate's action is in line with a rising trend of large exchanges, such as Coinbase and Base, introducing their own Layer 2s in an effort to increase user engagement on-chain. Exchanges aim to increase liquidity, broaden ecosystems, and establish themselves as full-stack Web3 providers rather than only trading platforms by combining infrastructure with native tokenomics.