Coinbase's Base Layer 2 shatters transaction records with over 4.5 million in a single day
Quick Take
- This milestone cements Base’s position as the leading Layer 2, showcasing its growing popularity and robust ecosystem.
- The following is an excerpt from The Block’s Data and Insights newsletter.
Coinbase's Layer 2 solution continues to dominate the scaling race, shattering records with over 4.5 million transactions on Saturday. This milestone cements Base's position as the leading Layer 2, showcasing its growing popularity and robust ecosystem.
The surge in transactions represents a significant leap from Base's already impressive performance, highlighting its rapid adoption and scalability. This growth trajectory puts Base far ahead of other Layer 2 solutions, demonstrating Coinbase's successful strategy in the competitive scaling landscape.
Coinbase recently launched cbBTC, a wrapped Bitcoin alternative, on both Ethereum and Base networks, which continues to fuel activity on the Layer 2.
Introduced last Thursday, cbBTC is an ERC-20 token backed 1:1 by bitcoin held at Coinbase, designed for use in DeFi applications across Ethereum and Base ecosystems. The product will aim to compete with WBTC, currently the largest tokenized BTC product with a market cap of nearly $9 billion.
The token's launch opens new possibilities for Bitcoin holders, allowing them to provide liquidity to DeFi protocols or use it as collateral for borrowing other assets.
Outside of new product launches, Base's success can be attributed to several factors:
- Coinbase's massive user base provides a ready pool of potential users, lowering the barrier to entry for many crypto enthusiasts.
- The integration with Coinbase's established infrastructure offers enhanced security and reliability, which are crucial factors for both retail and institutional users.
- The growing ecosystem of dApps on Base, including DEXs like Aerodrome and Curve and lending protocols such as Aave, Compound, and Morpho, provides a diverse range of use cases.
As Base continues to evolve, the introduction of cbBTC and other innovations could further fuel its growth. The platform's ability to consistently break transaction records suggests that Coinbase's bet on Layer 2 scaling is paying off, potentially reshaping the landscape of Ethereum scaling solutions.
This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.
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