Coinbase’s L2 Network Base Surpasses Arbitrum and Ethereum with 4.2M Daily Transactions

As a seasoned crypto investor with a knack for spotting promising opportunities, I find myself increasingly intrigued by the meteoric rise of Coinbase’s Base L2 network. With its impressive transaction volume surpassing that of Ethereum and other competitors, it’s clear that Base is making waves in the DeFi and dApp sectors.


As an analyst, I’ve observed that Coinbase’s native layer 2 network, Base, has exceeded 4.2 million daily transactions, based on data from Coin98Analytics. Arbitrum comes the closest with approximately 1.3 million transactions, while Ethereum trails slightly behind with around 1.1 million transactions. On September 9, this L2 network reached an unprecedented high of 4.4 million transactions, which is four times higher than its mainnet network, Ethereum.

Base’s Scalability and Developer Appeal

Its scalability and affordably priced transactions are significant contributors to its thriving presence within Layer 2 networks. These attributes make it an alluring choice for developers, resulting in a rapid increase of user-focused applications.

Coinbase’s L2 Network Base Surpasses Arbitrum and Ethereum with 4.2M Daily Transactions

As a researcher, I’ve observed that the platform I’m working on contributes to additional income via gas fees, which in turn encourages more users to interact with apps built on Base. Compared to Ethereum, Base processes a higher volume of transactions, thereby alleviating congestion on the Ethereum mainnet. However, this year has been challenging for Base as it’s faced criticism over its performance, including failed transactions and a decline in ETH price.

Rising Activity in dApps and DeFi

The surge in its transaction volume reflects the growing activity in decentralized finance and applications. Insights from Dune Analytics show that apps like Uniswap, Thirdweb, USDC, Basename, and Zora are driving the growing activity, collectively accounting for 63.7% of users on the Base network. 

As more transactions occur on the network, there’s an indirect impact on Ethereum, causing a rise in demand for blockspace and potentially leading to higher gas fees. Yet, Ethereum’s ability to scale efficiently means it can manage increases in activity from sources like Base without issue.

The increasing transaction activity on Base’s network is reflected by the impressive performance of major coins within it. As per CoinGecko, LayerZero boasts a market capitalization of approximately $382.2 million, while USDC consistently holds a stable market cap of around $35 billion. Moreover, Brett has experienced substantial growth, with a market cap standing at $737.3 million, demonstrating robust investor faith in Base’s burgeoning ecosystem.

Future as a Leader in Layer 2 Solutions

Base, handling more than 4 million daily transactions with backing from Coinbase, remains a leading force in the Layer 2 arena. The expanding user community, competitive pricing, and pioneering strategies solidify its status as a significant contributor to Ethereum’s scalability solutions.

As a researcher exploring the dynamic landscape of blockchain technology, I find myself consistently impressed by Base’s performance in the Decentralized Finance (DeFi) and decentralized applications (dApp) sectors. This promising track record suggests an exciting future for Base in the Layer 2 race, where it is surpassing its competitors and propelling the growth of Ethereum’s ecosystem.

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2024-09-10 21:30