Base, the Ethereum layer 2 network backed by Coinbase, is experiencing rapid growth, reflecting the significant adoption and interest it enjoys from the cryptocurrency community.
Base’s growth comes alongside the exchange’s launch of Smart Wallet, a self-managed solution that aims to attract more than 1 billion users on-chain.
Increased network activity
Base recorded the highest daily transactions of any Ethereum layer-2 network over the past day, surpassing notable competitors such as Arbitrum and Optimism.
According to data from blockchain analytics platform GrowThePie, the number of transactions at Base increased 7.1% to 2.7 million on June 4 compared to 1.89 million at Arbitrum.
L2Beat data further confirms this important activity. The platform shows that Base processes an average of 31.37 TPS (transactions per second), while Arbitrum processes around 22 TPS.
This surge in network activity has led to a significant increase in the total value (TVL) of assets locked in Layer 2 networks. L2BEAT reported that Base’s TVL increased 8.68% to $7.64 billion, close to Optimism’s TVL of $7.76 billion. Currently, in the L2 market, Optimism and Base occupy 16.42% and 16.17% of the market share, respectively, and Arbitrum holds 40% of the market.
Additionally, the Dune Analytics dashboard curated by on-chain analyst Kofi shows that Base is the highest-grossing layer 2 network over the past three months. According to the dashboard, Base earned $16.88 million in March, $12.9 million in April and $6.98 million in May.
Market experts said Base’s network activity has surged since the implementation of the Dencun upgrade in March. This update introduces proto-danksharding, which significantly reduces gas fees for layer 2 solutions like Base. at that time, CryptoSlate Base reported an increase in bot trading activity that drove trading fees to high levels compared to competitors.
smart wallet
Coinbase is bringing its highly anticipated smart wallet product to market, saying it will solve critical challenges that make on-chain “slow, expensive, and difficult.”
According to the company:
“Smart Wallet allows users to create a free, secure, self-storage wallet in just seconds. “It simplifies onboarding, reduces the number of transactions to sign, and allows you to seamlessly use your Coinbase balance on-chain.”
The self-managed wallet will initially support eight networks, including Base, Ethereum, Optimism, Arbitrum, Polygon, Avalanche, BNB, and Zora.