Base on Fire: Coinbase’s L-2 Network Sets New Trading Volume Record

Reaching a significant mark of $1 billion in trading volume on Coinbase’s layer-2 network signifies increasing demand for scaling solutions in this area.

Base Sets New Trading Volume Record

On March 30, the Ethereum layer-2 network Base, created by Coinbase, reached a noteworthy feat as it recorded over $1 billion in decentralized exchange (DEX) trades within a single day. This represented a substantial jump of 25% compared to the previous day’s volume of approximately $959.63 million.

Approximately two-thirds (64.3%) of all trading transactions took place on Uniswap. This was more than double the volume seen on Aerodrome Finance (9.7%). SharkSwap accounted for a smaller portion at 7.8%. The number of daily active users (DAU) increased by around 12.4%, going from 153,000 to 172,000. Over the previous six weeks, an average of 667,765 weekly active users were recorded.

Base Memecoins Gain Traction

Although none of the coins on the Base network have billion-dollar market capitalizations, DEGEN and BRETT stand out as two of the largest memecoins on this platform. DEGEN has a market value of approximately $709.9 million, while BRETT boasts a market cap of around $654.6 million. The market cap of DEGEN experienced a nearly five-fold surge within a week, signifying the escalating popularity of memecoins on Base.

Amidst rising buzz in the crypto world, there’s been a significant increase in trading activity on Base. Some believe this platform could be the next hotspot for memecoins. The uptick in transactions and heightened user engagement, as indicated by the rise in active addresses, fuels this optimistic outlook.

Growing User Base and Activity

The large amount of data underscores the increasing demand for layer-2 solutions as effective methods to expand Ethereum‘s blockchain capacity, tackling problems such as elevated transaction fees and network overload. Base’s layer-2 platform functions above Ethereum’s primary chain, delivering swifter and more affordable transactions without compromising the underlying blockchain’s security.

In the crypto world, there’s a lot of buzz about Base potentially becoming the go-to destination for memecoins. Crypto expert Wizard of SoHo made this comparison, viewing Base as a “budding Solana” and expecting it to host numerous memecoins valued at billions of dollars.

Factors Driving Record-Breaking Volume

Multiple elements are driving the remarkable surge in activity. The crypto market’s overall improvement is one factor, while another is the growing use of Base’s network by decentralized exchanges (DEXs) and decentralized finance (DeFi) projects.

During this surge, Uniswap’s leading position showcases its significance as a major platform for liquidity and trade in the Decentralized Finance (DeFi) world. The addition of layer-2 solutions such as Base demonstrates Uniswap’s dedication to expanding and enhancing its capabilities.

Real-World Value of Layer-2 Networks

The achievement of Base network’s success underscores the broader trend in the industry towards employing layer-2 scaling methods. With Ethereum’s Beacon Chain yet to be fully introduced, platforms like Base provide an instant solution to Ethereum’s constraints, resulting in a more productive and long-term viable ecosystem for both users and developers.

A milestone demonstrates to the public, investors, and builders that layer-2 solutions bring tangible benefits beyond mere theoretical improvements. This underscores the significance of scalability for widespread acceptance of blockchain technology.

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2024-04-02 15:10