Coinbase’s Layer 2 solution, Base, has emerged as a dominant force in the crypto space, outperforming all other Layer 2 networks across crucial metrics like Total Value Locked (TVL), transaction volume, transaction count, and active users.
Starting 2024 with approximately $180 million in decentralized exchange (DEX) volume, Base has experienced exponential growth, reaching an astounding $13 billion by the year’s end. This surge has placed it among the top Layer 2s, only behind Ethereum and Solana in terms of volume.
Base’s rapid growth speaks volumes about its increasing role in the Ethereum ecosystem, where it now stands as the largest Layer 2 network by market share. The network’s success is further fueled by its latest initiative: subsidizing gas fees for users who pay in USDC. This move makes transactions more affordable, encouraging even greater adoption and boosting its economic activity.
By leading the charge in user engagement and economic output, Base is pushing the adoption of USDC, creating a seamless experience for users while driving significant liquidity into the Ethereum ecosystem. Its success is a clear indicator of the growing importance of Layer 2 solutions in scaling blockchain networks and enhancing user experience.
Base, the largest L2 on Ethereum, is now subsidizing gas costs for users who pay in USDC. This is the L2 with the highest amount of economic activity and the largest market share that is now pushing USDC to its users. If the thesis was, “we give up execution but we export ETH the…
— Gwart (@GwartyGwart) December 21, 2024
As Base continues to build on this momentum, it’s clear that Coinbase is setting the standard for Layer 2 solutions. The future of Ethereum’s scalability appears brighter than ever, with Base playing a key role in this transformation.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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