Updated: March 21, 2024, 4:30 AM EDT
Daily trading volume on Base, the Ethereum layer 2 network, surged on Tuesday to a new high of $356 million, up about 51% from Monday, according to Defillama data.
The data also showed Base’s total value locked (TVL) also hit an all-time high, totaling $745.3 million. It recorded 1.65 million daily transactions and about 130,000 new users on Wednesday, according to analytics platform Dune.
The Base network saw a significant increase in activity earlier this month following the launch of Dencun, registering over 1 million transactions on March 17, up from around 440,000 before the Ethereum upgrade. For the time being, network activity has surpassed competitors such as Arbitrum and Optimism in terms of on-chain activity.
“The surge in activity on Coinbase’s Base network can be attributed to Ethereum’s recent Dencun upgrade, which has significantly reduced transaction fees on Layer 2 networks, making Base one of the most cost-effective options on the market to leverage Ethereum.” Joe Caselin said: I am the Director of Institutional Marketing at BIT. Dencun may have been the catalyst, but most of yesterday’s activity occurred amid a brief surge in average transaction fees above $1, the data shows.
Analysts further predict Base’s continued growth as Coinbase strives to connect users to the on-chain economy. Coinbase recently unveiled a smart wallet that allows traders to use their cryptocurrency exchange balances directly on-chain.
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About the author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He previously worked as a reporter for Forkast.News, where he actively covered the fall of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor’s degree in Journalism and Business Marketing from the University of Hong Kong.