The Coinbase Ethereum layer-2 network Base experienced a remarkable surge in daily transactions, reaching a new record of 2 million on March 16, shortly after the Dencun upgrade.
This surge followed a significant increase from around 440,000 transactions per day before the upgrade. Concurrently, daily new users skyrocketed to 666,866 on March 16, marking a staggering 3,200% rise compared to pre-Dencun levels.
This surge can be attributed to a substantial reduction in fees post-upgrade, with average transaction fees on Base plummeting by over 60%. Launched by Coinbase in August, Base ranks as the sixth-largest network in Ethereum’s layer-2 ecosystem, boasting a total value locked of $1.44 billion and a 4.1% market share among layer 2s.
The Ethereum Dencun upgrade, particularly EIP-4844, introduced data blobs or proto-danksharding, significantly lowering transaction fees across leading layer-2 networks like Arbitrum, Optimism, Base, and zkSync Era by 60% to 90%.Â
In contrast, Ethereum layer-1 gas fees remain relatively high, with fees for token swaps on Uniswap’s Optimism deployment dropping to as low as $0.01 post-Dencun.
The significant surge in transactions and new users on the Coinbase Ethereum layer-2 network Base following the Dencun upgrade underscores the immense impact of fee reductions in driving user adoption and network activity.
Also Read: Ethereum Dencun Upgrade Trims Ether Supply to Aug 2022 Lows
