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Base on Fire: Coinbase's L-2 Network Sets New Trading Volume Record

Base on Fire: Coinbase's L-2 Network Sets New Trading Volume Record

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Coinbase's Base layer-2 network achieves a groundbreaking $1 billion trading volume milestone, indicating a growing interest in layer-2 scaling solutions. 

Base Sets New Trading Volume Record

On March 30, Base, the Ethereum layer-2 network developed by Coinbase, hit a significant milestone by crossing $1 billion in trading volume on decentralized exchanges (DEX) within 24 hours. This achievement marked a 25% increase compared to the previous day's volume, which was $959.63 million.

Most of the trading activity, accounting for 64.3% of the volume, occurred on Uniswap, followed by Aerodrome Finance at 9.7% and SharkSwap at 7.8%. Daily active users (DAU) witnessed a spike of around 12.4%, climbing from 153,000 to 172,000. Over the past six weeks, there has been an average of 667,765 weekly active users.

Base Memecoins Gain Traction

While no tokens on the Base network have market capitalizations at or above $1 billion, Degen (DEGEN) and Brett (BRETT) are among the largest Base memecoins, boasting market caps of $709.9 million and $654.6 million, respectively. DEGEN's market cap saw an almost five-fold increase in just one week, reflecting the growing traction of Base memecoins.

The surge in trading volume comes amidst growing speculation within the crypto community that Base could emerge as the next hub for memecoins. Contributors believe that the surge in transactions and active addresses indicates growing user activity on Base.

Growing User Base and Activity

The record-breaking volume underscores the growing interest in layer-2 solutions as viable means to scale the Ethereum blockchain, addressing issues like high transaction fees and network congestion. Base's layer-2 network operates atop Ethereum's mainchain, providing faster and cheaper transactions while ensuring the security of the underlying blockchain.

Speculation abounds in the crypto community, suggesting that Base could emerge as the premier hub for memecoins. Crypto trader Wizard of SoHo drew parallels between Base and an "early Solana," claiming that the platform could see the rise of several billion-dollar memecoins.

Factors Driving Record-Breaking Volume

Several factors contribute to the record-breaking volume, including the general uptick in cryptocurrency trading as markets recover. Additionally, the increasing adoption of Base's network by DEXs and decentralized finance (DeFi) applications plays a significant role.

Uniswap's dominance in this surge highlights its role as a central hub for liquidity and trading within the DeFi ecosystem. The integration of layer-2 solutions like Base underscores its commitment to growth and scalability.

Real-World Value of Layer-2 Networks

The success of the Base network also reflects the overall industry inclination toward layer-2 scaling solutions. With the full launch of Ethereum’s Beacon Chain still pending, layer-2 protocols like Base offer immediate relief from Ethereum's limitations, fostering a more efficient and sustainable environment for users and developers.

The milestone proves to the market, investors, and developers that layer-2 networks deliver real-world value, not just theoretical enhancements. It emphasizes the importance of scalability in mainstream blockchain adoption.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

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