- Base achieved a significant ATH, surpassing 4.2 million daily transactions.
- This milestone reflects a strategic approach to capitalizing on Ethereum’s limitations.
Base, Coinbase’s Layer 2 blockchain, recently hit a significant ATH, surpassing 4.2 million daily transactions.
This milestone puts Base ahead of Ethereum in terms of transaction volume, a notable achievement in the blockchain space. In this article, AMBCrypto explores how Base managed to reach this all-time high just one year after its launcheven in a context of broader market volatility.
Base is ahead of its competitors
According to the data, Since the beginning of 2023, we have seen a resurgence of crypto activity, particularly on Ethereum and its L2.
It is worth noting that user activity on Layer 2 networks began to surpass that of Ethereum itself as early as March of this year, when Layer 2 active users reached 3 million, marking a significant increase from Ethereum’s 2.38 million.
Source: Dune
The graph above reveals an interesting development.
While Polygon has long maintained its dominance among the top five L2 solutions, followed by Arbitrum (both significantly outperforming the others), Base has recently claimed a prominent position.
Currently, Base leads with over 4 million weekly addresses, followed by Polygon with 2.2 million and Ethereum with 1.82 million, signaling a notable shift in L2 adoption.
According to AMBCrypto’s analysis, Base’s rapid increase in user activity highlights its growing appeal to a broad user base.
What is driving this change?
A strategy embellished in gold
By making it more affordable for users to interact with decentralized applications, Base is paving the way for mass adoption of Web3.
Ethereum, while remaining the leading blockchain for dApps and DeFi, faces challenges with scalability and high gas fees.
In contrast, Base took advantage of these limitations by offering lower transaction costs, higher scalability, and faster speeds, as illustrated in the graph below.
Source: DeFiLlama
Base’s average transaction fees remained significantly lower than Ethereum’s, with Ethereum averaging $1.05 per transaction compared to Base’s $0.0419, highlighting Base’s superior cost-effectiveness for users.
Additionally, Base’s TVL reached $1 billion in mid-March, less than a year after its launch – an impressive achievement. While still significantly below Ethereum’s $54 billion TVL, it has proven its strength by capturing high transaction volume.
AMBCrypto notes that Ethereum’s performance dependence on Bitcoin has also contributed to Base being seen as a superior alternative.
Overall, the Coinbase-backed Base ecosystem has attracted users, with its robust infrastructure paving the way for mass adoption.
