Base Outshines Arbitrum As Most Used Ethereum Layer 2

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As a seasoned crypto investor with a keen interest in Ethereum Layer 2 scaling solutions, I’ve been closely monitoring the developments between Base Network and its leading competitor, Arbitrum. Based on recent data and trends, I’m bullish on Base and here’s why.

In simpler terms, the scaling solution of Coinbase, known as Base Network, has surpassed the achievements of some major competitors such as Arbitrum.

Base Growth and Key Triggers

Based on the findings of on-chain specialist Leon Waidmann, Base has now taken over as the most commonly used Ethereum Layer 2 solution. Previously, this title belonged to Arbitrum. Over the past month, the volume of transactions handled by Base has experienced a significant increase, with more than 60% growth recorded within the last 30 days.

#BASE is officially the most used #Ethereum L2!
The #Coinbase Chain has even surpassed the long-time leader of the #ETH L2 ecosystem, #Arbitrum!
Recent transaction counts:
Base: 3.5M daily txs (+60% in the last 30d)
Arbitrum: 2M daily txs (-22.3% in the last 30d)
— Leon Waidmann | Onchain Insights (@LeonWaidmann) June 29, 2024

As a researcher studying transaction data for L2 and Arbitrum networks, I’ve observed some interesting differences in their daily volumes. While L2 processes approximately 3.5 million transactions on a regular day, Arbitrum handles around 2 million. However, during the same timeframe, there was a significant increase in L2’s transaction volume, which saw over 60% growth, resulting in more than 5.4 million daily transactions. In contrast, Arbitrum only experienced a modest increase, with about 22.3% more transactions, totaling around 2.4 million daily.

As an analyst, I’ve observed a substantial growth in Base’s standing, which can be attributed to several factors. One significant factor is the ongoing memecoin craze that has swept through the market. The prices of some popular meme coins listed on Base have skyrocketed, leading to increased adoption. Consequently, some top-tier hedge funds have started incorporating these coins into their portfolios. Currently, the total market capitalization for memecoins hovers around $54.7 billion.

As a market analyst, I’d rephrase it as follows: In December 2023, my attention was drawn to Solana’s dogwifhat (WIF) token which had recently gained significant traction, reaching prominence in the crypto world. Notable trading firms like Robinhood and Binance took notice and expressed their support by listing the token on their platforms. At present, WIF is priced at $2.12, representing a 10.15% increase in value over the past 24 hours.

Shiba Inu (SHIB) has seen a modest price increase in recent days. Just two days ago, the memecoin experienced a approximately 2% price surge, mirroring the broader crypto market recovery. This upward trend was not limited to SHIB alone, with other notable cryptocurrencies like Mamba, Toshi, and Brett also showing gains.

Shiba Inu’s Burn Rate Hit 1100%

The daily SHIB burn rate has been climbing rapidly, reaching a staggering 1,100% increase as of today. This surge has significantly improved market sentiment and led to the destruction of around 19.76 million SHIB in the last 24 hours. With this aggressive approach to reduce the total supply, the amount of SHIB that has been burned now totals 410.72 trillion, leaving a current circulating supply of 583.33 million.

Since April, Coinbase’s Base has surpassed Arbitrum in terms of transaction volume with a significant lead. As reported by Coingape on April 7, the number of transactions for Base within the past 30 days reached 45.21 million, compared to Arbitrum One’s 38.58 million and Ethereum’s 37.93 million, based on data from L2Beat.

Additionally, the Total Value Locked (TVL) amounted to approximately $3.89 billion during that period, representing a notable surge of 19.96% in transactional volumes.

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2024-06-30 01:22