In the wake of the recent Dencun upgrade on the Coinbase Ethereum layer-2 network, Base has witnessed an astounding surge in daily transactions. It reached a remarkable milestone of 2 million transactions on March 16th. This surge represents a staggering 350% increase from its pre-upgrade transaction volume.
The significant spike in daily transactions can be primarily attributed to a substantial reduction in transaction fees following the Dencun upgrade. The base was handling about 440,000 transactions a day before the change. However, with the implementation of the upgrade, transaction fees on Base have plummeted by over 60%. This makes transactions more cost-effective and enticing for users.
The Dencun upgrade, which introduced Ethereum Improvement Proposal 4844, implemented innovative solutions such as data blobs or proto-dank sharding. This enhancement has greatly improved L2 data availability, resulting in a dramatic reduction in gas costs by up to 90% for some networks, including Base.
Furthermore, the impact of the Dencun upgrade extends beyond Base. Other leading layer- 2 networks like Arbitrum and Optimism have also experienced a significant decrease in average transaction fees. This reduction ranges from 60% to 90%. This underscores the widespread benefits of the upgrade across the Ethereum ecosystem.
Despite the dominance of other layer-2 networks like Arbitrum and Optimism, Base has emerged as a formidable player in the Ethereum layer-2 ecosystem. It boasts a total value locked of $1.46 billion and a 4.1% market share. Base continues to solidify its position in the decentralized finance (DeFi) space.
