- A remarkable 51% surge in the daily trading volume on the Base network, reaching an impressive milestone of $356 million.
- This surge is indicative of growing activity and interest within the decentralized finance (DeFi) sector, particularly on Ethereum Layer 2 (L2) chains.
The Base network, operating on the Ethereum Layer 2 platform, witnessed a remarkable surge in its daily trading volume, reaching a staggering $356 million on Tuesday. This represents a significant 51% increase compared to the previous day’s trading volume, as reported by DefiLlama data. Alongside this surge in trading activity, Base also achieved a new milestone in its total value locked (TVL), reaching an all-time high of $745.3 million. The network recorded a substantial daily transaction count of 1.65 million and welcomed nearly 130,000 new users on Wednesday, according to analytics from Dune.
This remarkable uptick in Base network activity can be attributed to the recent Ethereum upgrade known as Dencun. This upgrade played a pivotal role in reducing transaction fees on Layer 2 networks, rendering Base one of the most cost-effective options available for utilizing Ethereum.
Joe Caselin, head of institutional marketing at BIT, highlighted the impact of Dencun on Base’s surge in activity, emphasizing its significance in making the network more accessible and appealing to users. However, despite the positive developments, data indicates a brief spike in average transaction fees to over $1, coinciding with the surge in Base network activity.
Looking ahead, analysts foresee continued growth prospects for Base, particularly as Coinbase, the driving force behind the network, aims to foster greater connectivity between its users and the on-chain economy. Coinbase’s recent introduction of its smart wallet, designed to enable traders to directly utilize their balances on the exchange within the on-chain ecosystem, further underscores the platform’s commitment to facilitating seamless crypto transactions and enhancing user experience.
Understanding Base: Coinbase’s Ethereum Layer 2 Chain
Base is a prominent Ethereum Layer 2 (L2) chain, offering developers a secure, cost-effective, and developer-friendly platform for on-chain activities. Developed in collaboration with Optimism, Base operates on the OP Stack, incubated within the infrastructure of Coinbase.
Key features of Base include its reliance on Ethereum for security and scalability, complemented by Coinbase’s resources and tools to facilitate seamless integration and access to a vast user base and assets. Furthermore, Base offers full compatibility with the Ethereum Virtual Machine (EVM) at significantly lower transaction costs, empowering developers to innovate and build decentralized applications efficiently.
With a commitment to openness and decentralization, Base operates as an open-source platform, welcoming developers to contribute to its growth and evolution within the vibrant community of Optimism’s OP Stack.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
