July 16, 2024
Coinbase's Layer 2 blockchain, Base, shatters records
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FriendTech Boosts Base to Record Highs: Coinbase’s Layer 2 Blockchain Hits Milestone

Coinbase’s layer 2 blockchain, Base, launched in early August, has achieved a remarkable milestone as its daily transaction volume reached an all-time high, as reported by IntoTheBlock.

On Thursday, Base recorded a staggering 1.88 million transactions, surpassing the combined total of its layer 2 competitors, Arbitrum and Optimism, which registered 780,000 and 370,000 transactions, respectively. Lucas Outumuro, Head of Research at IntoTheBlock, noted that this surge in Base’s activity was not primarily driven by decentralized finance (DeFi) applications or non-fungible token (NFT) marketplaces. Instead, a significant portion of this increased usage can be attributed to a new social application called FriendTech.

FriendTech, a decentralized social network platform built on Base, brands itself as the marketplace for your friends. The platform witnessed a surge in usage over the past week, with its daily transaction count also reaching a record high of 529,000, according to data from IntoTheBlock. The uptick in activity was partly fueled by users seeking to accumulate points for a future airdrop.

Upon its launch in early August, FriendTech had a significant impact on Base’s activity, driving daily active users to a record high. In August, Base also maintained an impressive average of 15.88 transactions per second, surpassing Ethereum and other rival layer 2 blockchains like Arbitrum and Optimism. Notably, much of this increased activity was attributed to FriendTech.

However, it’s worth noting that after its initial surge, FriendTech’s transaction volume experienced a significant decline, dropping from its peak of 525,000 transactions in early August to 51,000 by the end of the month. Concurrently, Base’s daily transactions also witnessed a slowdown during the same period. IntoTheBlock attributes the recent resurgence in Base’s activity to the evolving nature of Ethereum’s layer 2 ecosystems, with participants becoming increasingly specialized in their respective niches.

IntoTheBlock also highlighted that Base has rapidly emerged as the leading layer 2 platform in terms of unique addresses and transaction volume, owing to Coinbase’s extensive user base. This has positioned Base as a strong candidate for the success of social applications like FriendTech.

Importantly, FriendTech’s growth did not lead to congestion and higher fees on the Ethereum network, as seen in previous frenzied activities. Some analysts see this as a possible indication that Ethereum’s efforts to scale through the development of supplementary layer 2 networks, such as Coinbase’s Base, are yielding positive results.

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Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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