- Base achieved a significant ATH, surpassing 4.2 million daily transactions.
- This milestone reflected a strategic approach to capitalize on Ethereum’s limitations.
As a seasoned crypto investor who has witnessed the rise and fall of numerous digital assets over the years, I must admit that Base’s recent achievement of surpassing 4.2 million daily transactions is nothing short of remarkable. The fact that it’s outperforming Ethereum in terms of transaction volume is a testament to its strategic approach and capitalization on Ethereum’s limitations.
Base, Coinbase’s Layer 2 blockchain, recently achieved a significant ATH, surpassing 4.2 million daily transactions.
As a researcher delving into the fascinating world of blockchain, I’m thrilled to share that Base has surpassed Ethereum in transaction volume – a significant milestone indeed! In this article, I’ll be unraveling the mystery behind how Base achieved this historic high, just a year after its inception, even during the tumultuous market conditions.
Base leads over its competitors
As a researcher observing the crypto market trends, I’ve noticed an uptick in crypto-related activities starting from early 2023, particularly within the Ethereum network and its layer 2 solutions.
Remarkably, the number of active users on Layer 2 networks started exceeding Ethereum as far back as March this year. This was evidenced when L2 networks boasted 3 million active users, which represented a substantial growth over Ethereum’s 2.38 million userbase.
Source : Dune
The chart above revealed an interesting development.
Although Polygon and Arbitrum have consistently ranked among the leading L2 (Layer 2) solutions for some time now, significantly surpassing their competitors, Base has more recently emerged as a significant player in this space.
At the moment, it’s clear that Base is ahead with approximately 4 million weekly usage points, while Polygon trails behind with about 2.2 million and Ethereum with 1.82 million. This trend suggests a significant move towards layer-2 (L2) adoption.
Based on AMBCrypto’s examination, the significant surge in user engagement on Base suggests that it is becoming increasingly popular among many users.
What is driving this shift?
A strategy embellished in gold
By reducing costs for users to engage with decentralized apps, Base is opening up a path towards widespread usage of the Web3 platform.
Ethereum continues to be the dominant platform for decentralized applications (dApps) and Decentralized Finance (DeFi), but it encounters difficulties in terms of scalability and elevated transaction fees, often referred to as ‘gas fees’.
Instead, Base has taken advantage of these restrictions by offering reduced transaction fees, outstanding scalability, and quicker processing times, as demonstrated in the graph below.
Source : DeFiLlama
The typical transaction fee on Base was significantly less expensive than on Ethereum, as Ethereum’s average fee was $1.05 per transaction versus Base’s $0.0419, demonstrating Base’s clear advantage in terms of cost-effectiveness for its users.
Furthermore, Base’s Total Value Locked (TVL) surpassed the $1 billion mark by mid-March, which is just a year after its debut – an impressive feat. Although it is currently far from Ethereum’s massive $54 billion TVL, it has demonstrated its robustness by handling substantial transaction volumes.
It’s pointed out by AMBCrypto that the performance of Ethereum being linked to Bitcoin has led some to view Base as a more favorable choice.
In essence, the user-friendly environment built by Base, backed by Coinbase, has drawn a significant number of users. Its strong infrastructure serves as a catalyst for widespread acceptance and use.
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2024-09-10 19:04