TL;DR
- Record Transactions: The Ethereum Layer-2 network, BASE, hit a record of 2 million daily transactions following the recent Dencun upgrade, marking a significant milestone in its operational history.
- Fee Reduction and Adoption: The Dencun upgrade led to a significant reduction in transaction fees on BASE, making it more accessible and affordable for users, which in turn led to an increase in its adoption.
- Changing Dynamics: Despite the dominance of Arbitrum and Optimism in the Layer-2 ecosystem, the surge in BASE transactions indicates a shift in the landscape, positioning BASE as a potential major player in the Layer-2 ecosystem.
The Ethereum Layer-2 network, BASE, has recorded a staggering 2 million daily transactions, marking a new high in its operational history. This surge comes in the wake of the recent Dencun upgrade on the Ethereum mainnet. Before the Dencun upgrade, BASE was processing around 440,000 transactions per day.
However, the day after the upgrade, this figure climbed to 1.1 million and continued to rise in the subsequent days, hitting a record 2,064,920 on March 16. This 350% jump in transactions has been linked to a significant reduction in fees for BASE following the Dencun upgrade. Average transaction fees on BASE have fallen by more than 60% since the upgrade.
This reduction in fees has made BASE more accessible and affordable for users, leading to an increase in its adoption. The Dencun upgrade introduced EIP-4844, which reduced layer-2 transaction fees by introducing data blobs or proto-danksharding. This upgrade improved L2 data availability, which lowered gas costs by as much as 90% for some networks.
BASE vs Arbitrum and Optimism: The Changing Dynamics of Layer-2 Networks
Despite the surge in BASE transactions, leading layer-2 networks Arbitrum and Optimism continue to dominate the layer-2 ecosystem with a combined total value locked of $23 billion. They command a market share of 42% and 23%, respectively.
However, the recent surge in BASE transactions indicates a shift in the landscape. With the Dencun upgrade reducing transaction fees and increasing the scalability of the Ethereum network, BASE is poised to become a major player in the Layer-2 ecosystem.
In conclusion, the Dencun upgrade has had a profound impact on the Ethereum Layer-2 network, BASE. By significantly reducing transaction fees and increasing scalability, the upgrade has paved the way for BASE to process a record 2 million transactions in a single day. This development marks a significant milestone in BASE’s journey and sets the stage for its future growth.
