The Base network is experiencing a notable surge in transaction activity, signaling growing demand but also introducing operational challenges.

This heightened usage has caused the transaction success rate to drop from around 90% to approximately 70%, reflecting the strain on network resources.

Despite these hurdles, the surge in activity has significantly boosted Base’s Layer 2 (L2) revenue and profits. Last week alone, the network generated $4 million in L2 profits, even as profit margins declined from approximately 99% to 90% due to rising blob costs. This highlights

Additionally, asset flows between centralized exchange (CEX) addresses and Base are on the rise, offering a valuable proxy for measuring chain activity. These flows also shed light on the most frequently used exchanges for onboarding users and assets to the network. Currently, Coinbase and Binance dominate this space, accounting for 41% and 40% of the volume, respectively.

Base’s ability to attract high transaction volumes and substantial asset flows underscores its growing importance in the blockchain ecosystem. However, the decline in transaction success rates highlights the need for scaling solutions to accommodate this increased demand.

As the network continues to gain traction, its role as a critical infrastructure for blockchain users and developers becomes increasingly apparent. By addressing current limitations and optimizing for sustained growth, Base has the potential to solidify its position as a leading Layer 2 solution.

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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