Crypto Currency Records 4.2 Million Daily Transactions, Surpasses Ethereum

Base, the Layer 2 blockchain developed by Coinbase, has recently achieved a remarkable all-time high (ATH) by exceeding 4.2 million daily transactions. This milestone is a testament to Base’s strategic approach in leveraging the limitations of Ethereum, positioning itself as a frontrunner in transaction volume within the blockchain industry. In just a year since its launch, Base has made significant strides, even amidst the prevailing market volatility.

The resurgence in crypto activity, particularly on Ethereum and its Layer 2 solutions, has been evident since the beginning of 2023. Notably, the user activity on Layer 2 networks began surpassing that of Ethereum as early as March this year, with active Layer 2 users reaching 3 million, a notable increase from Ethereum’s 2.38 million.

An analysis of the data reveals a noteworthy development in the landscape of Layer 2 solutions. While Polygon and Arbitrum have traditionally dominated the top positions, Base has recently emerged as a prominent player. Currently, Base leads the pack with over 4 million weekly addresses, outpacing Polygon at 2.2 million and Ethereum at 1.82 million, indicating a significant shift in Layer 2 adoption trends.

The rapid growth in Base’s user activity underscores its increasing appeal to a wide user base. By offering a more cost-effective means for users to engage with decentralized applications, Base is paving the way for the mass adoption of Web3. While Ethereum continues to be a leader in dApps and DeFi, it faces challenges related to scalability and high gas fees. In contrast, Base has capitalized on these challenges by providing lower transaction costs, enhanced scalability, and faster transaction speeds.

The comparison between Base and Ethereum in terms of transaction fees highlights Base’s superior cost efficiency, with Base averaging $0.0419 per transaction compared to Ethereum’s $1.05. Additionally, Base’s Total Value Locked (TVL) reached $1 billion by mid-March, a remarkable feat within a year of its launch. Although Ethereum maintains a substantially higher TVL of $54 billion, Base has demonstrated its strength by capturing a significant transaction volume.

Furthermore, Base’s ecosystem, supported by Coinbase, has attracted users due to its robust infrastructure, setting the stage for broader adoption. The performance interdependence of Ethereum on Bitcoin has also played a role in positioning Base as a favorable alternative. Overall, Base’s success in surpassing Ethereum in daily transactions reflects its strategic positioning and growing prominence in the blockchain space.