Base is a Layer 2 (L2) network built on Ethereum. It uses a rollup technology called Optimistic Rollups to scale Ethereum by processing transactions off-chain and then batching them and submitting them to the Ethereum mainchain. This allows Base to offer cheaper and faster transactions than Ethereum mainnet.
Base Overtakes zkSync and Arbitrum
Base launched its public mainnet in July 2022. Since then, it has seen significant growth in all on-chain metrics. In August, Base generated more than $3.3 million in profit, surpassing other major L2 networks such as zkSync, Optimism, and Arbitrum.
Factors Leading To The Increase
There are a few factors that have contributed to Base’s success. First, Base is backed by Coinbase, one of the largest cryptocurrency exchanges in the world. This has helped to give Base a large user base and a lot of visibility. Second, Base offers a wide range of features, including a decentralized exchange, a payments app, and a non-custodial wallet. This makes it a versatile platform that can be used for a variety of purposes. Third, Base’s fees are very low, making it a cost-effective way to use Ethereum.
Leading L2 Network
The success of Base is a sign of the growing popularity of L2 networks. As Ethereum becomes more congested and expensive, L2 networks offer a way to scale Ethereum and reduce transaction fees. Base is well-positioned to capitalize on this trend and become a leading L2 network in the years to come.
Here are some additional details about Base’s growth in August:
- The network’s daily active users (DAUs) increased from 10,000 to 136,000.
- The total value locked (TVL) on the network increased from $10 million to $40 million.
- The number of transactions processed on the network increased from 100,000 to 500,000.
These numbers show that Base is gaining traction and becoming a popular choice for users who want to use Ethereum without having to pay high fees. It will be interesting to see how Base performs in the coming months and years.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.