Base Outshines Arbitrum As Most Used Ethereum Layer 2

Coinbase Layer 2 (L2) scaling protocol Base Network has outperformed some of its leading competitors like Arbitrum.

Base Growth and Key Triggers

According to on-chain analyst Leon Waidmann, Base has officially secured the position of “most used Ethereum L2.” For the longest time, Arbitrum held this position, but the Coinbase chain recently stripped it off the tag. Within the last 30 days, transactions processed on Base have surged by more than 60%.

#BASE is officially the most used #Ethereum L2!🥇

The #Coinbase Chain has even surpassed the long-time leader of the #ETH L2 ecosystem, #Arbitrum!

🔎Recent transaction counts:

🔹Base: 3.5M daily txs (+60% in the last 30d)
🔹Arbitrum: 2M daily txs (-22.3% in the last 30d) pic.twitter.com/x4p4N4hDBi

— Leon Waidmann | Onchain Insights🔍 (@LeonWaidmann) June 29, 2024

Daily, the L2 records as much as 3.5 million transactions. On the other hand, Arbitrum saw only as much as 2 million daily transactions. Within the same period that Base saw more than a 60% surge in its daily transactions, with Arbitrum registering only about 22.3%.

The sizable surge in Base’s position could be attributed to a number of factors including the ongoing memecoin frenzy. The prices of some of the top meme coins on Base grew to the point that they began to experience increased adoption. In light of these, some of the finest hedge funds started adopting them. The overall market capitalization for memecoins currently stands at around $54.7 billion.

After rising to “stardom” in December 2023, Solana-based dogwifhat (WIF) began to garner the support of some of the highest ranking trading firms. Robinhood and Binance announced their support for the token via listing. At the time of this writing, WIF was trading at $2.12 after gaining 10.15% in the last 24 hours.

Similarly, Shiba Inu (SHIB) has been exhibiting slight rise in price. Two days ago, the memecoin price surged by about 2%, reflecting a broad crypto market recovery. The action was not turned off Base with its core outliers including Mamba, Toshi, Brett.

Shiba Inu’s Burn Rate Hit 1100%

On one hand, SHIB burn rate is increasing daily. Today, the burn rate metric jumped up by 1,100%, a move that contributed to boosting market sentiment. This translated to the destruction of approximately 19.76 million SHIB in the last 24 hours, signaling a robust effort to reduce the overall supply. The total burned SHIB is now 410.72 trillion, leaving a current circulating supply of 583.33 million.

Meanwhile, Coinbase’s Base has continued to outshine Arbitrum in transaction count since April. On April 7, Coingape reported that Base’s 30-day transaction count came in at 45.21 million, Arbitrum One at 38.58 million, and Ethereum at 37.93 million, as seen on L2Beat.

Also, Base Total Value Locked (TVL) came in at $3.89 billion at the time, after recording a 19.96% increase in the volume of transactions at the time.

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