Crypto:
30336
Bitcoin:
$65.055
% 0.12
BTC Dominance:
%54.2
% 0.09
Market Cap:
$2.37 T
% 0.16
Fear & Greed:
60 / 100
Bitcoin:
$ 65.055
BTC Dominance:
% 54.2
Market Cap:
$2.37 T

Coinbase’s Base Network Sees Explosive Growth

Base Network

The Ethereum Layer 2 network, Base, developed by Coinbase, is experiencing a surge in activity. According to DefiLlama data, daily trading volume on Base skyrocketed to a new all-time high of $356 million on Tuesday, marking a significant 51% increase from the previous day.

This growth extends beyond trading volume. Base’s total value locked (TVL) also hit a record high of $745.3 million, as per data sources. Further data from Dune analytics platform reveals the network processed a staggering 1.65 million daily transactions on Wednesday, alongside welcoming nearly 130,000 new users.

Dencun Upgrade Fuels Activity

Earlier in March, Base witnessed a significant spike in activity following the rollout of the Dencun Ethereum upgrade. On March 17th, the network processed over 1 million transactions, a substantial leap from the pre-upgrade average of around 440,000. Currently, Base boasts more on-chain activity compared to competitors like Arbitrum and Optimism.

Reduced Fees Drive Adoption

Experts believe the recent surge in activity on Base can be attributed to the Dencun upgrade’s impact on Ethereum. This upgrade significantly reduced transaction fees on Layer 2 networks, making Base one of the most cost-effective options for utilizing Ethereum on the market. While Dencun might have been the initial catalyst, data suggests most of Tuesday’s activity occurred during a brief spike in average transaction fees, exceeding $1.

Coinbase Fostering Growth

Analysts predict continued growth for Base, fueled by Coinbase’s efforts to connect its user base to the on-chain economy. The recent unveiling of Coinbase’s smart wallet further strengthens this prediction. This new wallet is expected to empower traders to directly utilize their exchange balances for on-chain transactions.

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