• Coinbase’s Layer 2 blockchain BASE beat competitors Arbitrum and Optimism to the curb with the highest daily transactions over the past week.
  • Coinbase told FXStreet that the exchange is developing an open-source monitoring tool, Pessimism, to tackle the instances of scams and rug pulls on BASE. 
  • As competition among Layer 2 networks intensifies, BASE continues to attract new users and assets to its blockchain.

Competition among Layer 2 networks intensified with the launch of Coinbase’s blockchain BASE. BASE opened its mainnet for all users on August 9. Since its launch, the Layer 2 chain has amassed a large volume of users and average daily transactions on its blockchain. 

When compared to top Layer 2 blockchains, Arbitrum and Optimism, BASE leads the competition in the number of daily transactions on a seven-day timeframe.

Also read: Shiba Inu’s Shytoshi Kusama announces $2 million insurance policy for Ethereum, BONE paused on Shibarium

Coinbase’s BASE mainnet kicks Layer 2 competitors to the curb with user activity

Within a week of its mainnet launch, BASE has attracted a large volume of traders and capital to the Layer 2 ecosystem. According to data from crypto intelligence tracker DeFiLlama, BASE has amassed $164.87 million in total value of assets locked on its blockchain. 

BASE TVL as seen on DeFiLlama

BASE TVL as seen on DeFiLlama

Alongside a large volume of capital on its chain, BASE boasts of a large number of daily transactions on its network.

When compared to Arbitrum and Optimism, two large Layer 2 protocols, BASE is roughly at the same level in the seven-day moving average of the number of daily transactions. The daily transaction count for BASE, ARB and OP chains, is shown below:

Comparing daily transactions

Comparing daily transactions for ARB, OP and BASE chains on Dune Analytics

When comparing transactions per day on the three Layer 2 chains, on August 13, BASE led the three chains with the highest count of transactions, 573,120 while OP and ARB settled at 395,260 and 543,360 respectively. 

Comparing transactions/day

Comparing transactions/day on OP, BASE and ARB chains on Dune Analytics

Scams on BASE and how Coinbase plans to address them

A leading concern in the crypto ecosystem is the rising number of scam projects on the BASE blockchain. Coinbase told FXStreet that the exchange has a plan to tackle the same. A Coinbase spokesperson said,

Given the permissionless and open nature of Base, we expect to see various types of projects built on the network. We encourage consumers to do their research diligently before participating in any dApp, on Base or any other chain, just as they would on the open internet.

The exchange believes in empowering users with information and tools to avoid losses incurred in the event of such scams as BALD and SwirlLend rug pulls. Find out more here. Therefore, to enhance the security of the entire Ethereum ecosystem, Coinbase is developing Pessimism, an open-source monitoring tool. 

Pessimism will provide prompt notification of anomalies in the protocol and network and increase user confidence in projects launched on BASE.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

Like this article? Help us with some feedback by answering this survey:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000

Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000

Bitcoin price just like other assets, is highly impacted by the macro-financial developments. This includes the Nonfarm Payrolls (NFP) report released by the BLS of the United States. This time around, the NFP data is expected to cause a dip in the value of BTC.

More Bitcoin News

Ripple is now only 3% away from becoming a bigger entity than Binance Coin

Ripple is now only 3% away from becoming a bigger entity than Binance Coin

Ripple has overcome a lot of obstacles on its way to becoming the world’s fifth-largest cryptocurrency, as witnessed by the recent rise in XRP price. The native token of the world’s biggest crypto exchange, Binance Coin, on the other hand, has been moving in the opposite direction.

More Ripple News

Ethereum leads altcoins north as Bitcoin halts amid bull trap fears

Ethereum leads altcoins north as Bitcoin halts amid bull trap fears

Ethereum (ETH) price remains northbound, unrelenting despite the king of cryptocurrency, Bitcoin, showing weakness. Behavior analytics tool Santiment observes that Ether and altcoins are on a tear even as BTC momentum fades.

More Ethereum News

BTC headstrong as Spot ETF talks reach technical stage

BTC headstrong as Spot ETF talks reach technical stage

Bitcoin remains steadfast on the higher timeframe, amid news that spot BTC exchange-traded funds (ETF) discussions are now at the technical stage of approval. Specifically, talks with Spot BTC ETF issuers have advanced to key technical details, with Reuters indicating that it could signal a shift toward a potential approval.

More Cryptocurrencies News

Bitcoin Weekly Forecast: BTC uptrend capped by supply barrier at $43,860 as FOMO fails to suffice

Bitcoin Weekly Forecast: BTC uptrend capped by supply barrier at $43,860 as FOMO fails to suffice

Bitcoin (BTC) price uptrend has sustained since mid-September on the weekly timeframe but has since slowed down following the lack of tailwinds to drive the market. All along, narratives, themes and speculation were the driving factors, inspiring a wave of fear of missing out (FOMO) in the market. As it turns out, FOMO is not enough anymore.

Read full analysis