Base is a Layer 2 (L2) network built on 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.It uses a rollup technology called Optimistic Rollups to scale
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.