Coinbase-backed Ethereum layer-2 network, Base, is rapidly growing and seeing high adoption rates. The exchange recently launched its Smart Wallet, aimed at bringing over 1 billion users on-chain. Base has recorded the highest daily transactions among Ethereum layer-2 networks, surpassing rivals like Arbitrum and Optimism. The network has seen a surge in total value of assets locked (TVL), nearing Optimism’s TVL. Base is currently the highest-earning layer-2 network over the past three months.
The significant increase in network activity on Base can be attributed to the Dencun Upgrade implemented in March, which reduced gas fees for layer-2 solutions. This update saw heightened bot trading activities, leading to high transaction fees compared to competitors. Currently, Base controls 16.17% of the L2 market, closely following Optimism’s 16.42% share, while Arbitrum holds 40% of the market. The network’s transaction count has increased by 7.1% to 2.7 million on June 4, according to data from GrowThePie and L2Beat.
Coinbase’s Smart Wallet aims to simplify onboarding and reduce the complexity of going on-chain. Users can create a free, secure, self-custody wallet in seconds and easily access their Coinbase balances on-chain. The wallet initially supports eight networks, including Base, Ethereum, Optimism, Arbitrum, Polygon, Avalanche, BNB, and Zora. The product’s launch is expected to further drive adoption of Base and other supported networks.
The growth and success of Base highlight the rising interest and adoption of layer-2 solutions in the crypto community. The network’s ability to process an average of 31.37 transactions per second (TPS) and maintain a high TVL demonstrates its scalability and efficiency. With the implementation of the Dencun Upgrade and the launch of the Smart Wallet, Base is well-positioned to continue its growth and solidify its position as a leading Ethereum layer-2 network.
In conclusion, Base, backed by Coinbase, is experiencing rapid growth and increased network activity, surpassing rivals in daily transactions and total value of assets locked. The network’s success can be attributed to the Dencun Upgrade and the launch of the Smart Wallet, which aims to simplify onboarding and enhance the user experience. With its high TPS and growing TVL, Base is poised to maintain its position as a prominent player in the Ethereum layer-2 space.
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