Coinbase’s Ethereum layer-2 network, Base, experienced an unprecedented surge in daily transactions and new user registrations following the Dencun upgrade, setting new records and marking a significant milestone in the platform’s growth trajectory.
Before the upgrade, Base processed approximately 440,000 transactions per day. However, the implementation of the Dencun upgrade catalyzed a remarkable increase in transaction volume, with the daily transactions soaring to an astonishing 2 million on March 16, surpassing all previous records.
The surge in daily transactions was accompanied by a substantial influx of new users, with Base registering a staggering 666,866 new users on March 16 alone. This represents a staggering 3,200% surge compared to the average number of new users in the days leading up to the Dencun upgrade.
One of the key drivers behind this surge in activity is the significant reduction in transaction fees on Base following the Dencun upgrade. According to Blockscout data, average transaction fees on Base plummeted by more than 60% since the upgrade, making it more attractive and cost-effective for users to engage with the platform.
Launched by Coinbase in August, Base has quickly established itself as a prominent player in the Ethereum layer-2 ecosystem. With a total value locked of $1.46 billion, Base commands a 4.1% market share of layer-2 solutions, as reported by industry tracker L2beat.
The Ethereum Dencun upgrade introduced several enhancements, including the implementation of EIP-4844, which significantly reduced layer-2 transaction fees by introducing data blobs or proto-danksharding. This upgrade enhanced L2 data availability, resulting in a substantial reduction in gas costs by up to 90% for some networks.
The positive impact of the Dencun upgrade extended beyond Base, as other leading layer-2 networks such as Arbitrum, Optimism, and zkSync Era also experienced a significant decline in average transaction fees. According to data from Dune Analytics, transaction fees on these networks fell by between 60% and 90% following the upgrade, further reinforcing the benefits of protocol improvements in the Ethereum ecosystem.
Despite the surge in Base’s transaction volume and new user registrations, Arbitrum and Optimism continue to dominate the layer-2 landscape, boasting a combined total value locked of $23 billion and commanding a substantial market share of 42% and 23%, respectively.
The remarkable growth and success of Base post-Dencun upgrade underscore the resilience and innovation within the Ethereum layer-2 ecosystem. As transaction costs decrease and user adoption surges, platforms like Base are well-positioned to capitalize on the growing demand for scalable and cost-efficient solutions in the decentralized finance (DeFi) space.
