Base Network Hits Record Highs in Trading Volume and Activity

The Ethereum Layer 2 network, Base, witnessed a significant surge in daily trading volume, reaching a record high of $356 million on Tuesday, marking a 51% increase from the previous day, as reported by DefiLlama data.

Additionally, Base’s total value locked (TVL) soared to a new peak of $745.3 million. Data also indicates that the network saw 1.65 million daily transactions and welcomed nearly 130,000 new users on Wednesday, according to Dune analytics platform.

Earlier this month, Base experienced substantial growth following the launch of Dencun, with transaction volumes exceeding 1 million on March 17, up from around 440,000 prior to the Ethereum upgrade.

Presently, Base’s activity surpasses that of competitors like Arbitrum and Optimism in terms of on-chain engagement.

Joe Caselin, head of institutional marketing at BIT, attributed the surge in Base network activity to Ethereum’s recent Dencun upgrade, which notably reduced transaction fees on Layer 2 networks, making Base a cost-effective option for Ethereum utilization.

However, despite Dencun’s influence, data suggests that most of the activity occurred during a brief spike in average transaction fees to over $1.

Analysts anticipate continued growth for Base as Coinbase aims to integrate its users into the on-chain economy. Coinbase recently introduced its smart wallet, enabling traders to utilize their balances from the crypto exchange directly on-chain.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.