In a noteworthy development, Base, Coinbase’s Layer-2 (L2) blockchain solution, has achieved a new record, setting an all-time high in daily decentralized exchange (DEX) trading volume close to $3 billion. This significant achievement underscores Base’s escalating dominance in the L2 landscape and its pivotal role in scaling on-chain transactions for Coinbase users.
Blockchain analyst Dan Smith spotlighted Base L2’s groundbreaking volume of $2.9 billion. This figure includes $1.3 billion in ETH-USD trading, which also reached a record high. Other trading pairs, including ETH-cbBTC and BTC-USD, were on the verge of breaking their own respective records.
This impressive $2.9 billion DEX volume epitomizes Base’s mounting popularity among traders, particularly those dealing in ETH-USD pairs, which have benefited from recent price volatility. Blockchain enthusiast, Alexander, pointed out that this milestone marked the inaugural instance of Base almost hitting $3 billion in daily volume. He interprets this as proof of the escalating adoption of L2.
AerodromeFi, a decentralized protocol on Base focused on liquidity, also set a new record with a volume of $1.68 billion. This further underlines the ongoing momentum within the ecosystem. “This is the first time Base nearly passed $3 billion and AerodromeFi set a new ATH of $1.68 billion in volume,” said Alexander.
What sets Base’s success apart is that it operates without a native token. Coinbase has categorically stated that it has no plans to launch a token for Base, choosing to prioritize growth of the ecosystem and user adoption. This strategy has likely boosted its traction by emphasizing on utility and minimizing speculative risks that could dissuade long-term users.
Base lead developer Jesse Pollak recently stated, “There are no plans for a Base network token. We are focused on building, and we want to solve real problems that let you build better.”
The recent achievement comes on the heels of Base’s earlier milestones, which included reaching one billion transactions two months ago and exceeding six million daily transactions in October. More recently, the network outperformed Ethereum in user growth amidst expanding crypto markets.
Furthermore, Base’s Total Value Locked (TVL) has demonstrated consistent growth, which implies increased user participation, asset inflows, and liquidity within its ecosystem. An escalating TVL signifies heightened confidence in the platform, thereby fostering a stronger and more sustainable DeFi environment.
However, Base has not been without its share of criticism. The network has been accused of plagiarizing aspects of an NFT project, raising questions about originality and intellectual property rights. While this controversy did not hinder adoption, it underscored the challenges inherent in rapid innovation within the fiercely competitive blockchain sector.
Looking ahead, Base’s trajectory sets it up as a formidable player in the L2 space, contending with established entities like Arbitrum (ARB) and Optimism (OP). Its focus on utility, coupled with increasing user participation and liquidity, paints a promising future for the platform.
