Base Leads as Layer 2 Solutions, Says Coinbase CEO Brian Armstrong

[Cowboy]

Coinbase CEO Brian Armstrong has stated that Base now leads as the top Layer-2 solution by transaction volume.

Base harnesses “optimistic rollups” to enhance transaction speed and reduce costs by batching transactions off the main Ethereum blockchain.
These transactions are later consolidated and finalized on the Ethereum mainnet, maintaining the high-security standards for which Ethereum is known.
This efficient process significantly lowers costs.

Top Layer 2 Solution With the Highest Transaction Volume
Armstrong detailed the innovations driving this shift during the first-quarter earnings call on May 2, 2024. The significant transaction volume on the network represents a significant leap in blockchain capability.

According to Armstrong, it reflects Coinbase’s commitment to making crypto transactions as efficient and cost-effective as possible.

“Base has helped dramatically reduce transaction fees and confirmation times, getting us closer to our goal of having the average crypto transaction take less than one second and cost less than $0.01 anywhere in the world. Developer activity on it increased eightfold in Q1. In the last 30 days, Base has processed over two times as many transactions as the entire Ethereum network on Layer 1. Base is now the No. 1 Layer 2 solution by number of transactions processed, a huge accomplishment,” Armstrong said.

While numerous DeFi initiatives have launched on Base, the native projects on this platform have captured a substantial market share.

For instance, Aerodrome, the top decentralized exchange (DEX) in its ecosystem regarding total value locked (TVL), has recently matched Uniswap in fee generation. This is particularly significant given that Uniswap operates across 16 different chains.

Moreover, Friend.Tech, a decentralized social media platform on Base, airdropped its native token, FRIEND, on Friday in conjunction with V2. The launch and airdrop are speculated to boost the Base ecosystem’s presence significantly.

Read more: 7 Best Base Chain Meme Coins to Watch in 2024

Base Daily Used Gas. Source: Dune Analytics
The advancements in Base have led to an approximate 80% reduction in transaction fees, thanks to various protocol upgrades. Alongside these cost reductions, Armstrong announced the integration of the US Dollar Coin (USDC) across all Coinbase products.