Categories: Crypto News
| On
2023-09-16 3:24 PM

Coinbase’s Base Blockchain Skyrockets

By Nonhlanhla

Coinbase’s highly-acclaimed layer 2 blockchain, Base, launched in early August, has garnered significant traction, especially in the South African market. Recent statistics from IntoTheBlock indicate that Base achieved an unprecedented 1.88 million transactions in a single day. This figure surpasses the combined daily transactions of its immediate competitors, Arbitrum and Optimism, which stand at 780,000 and 370,000 respectively.

South Africa’s Role in Base’s Ascension

The surge in the blockchain’s activity isn’t solely attributable to global interest. Decentralized finance (DeFi) applications and non-fungible token (NFT) marketplaces, which are traditionally the drivers of blockchain activity, are not the primary forces behind this remarkable achievement. Lucas Outumuro, IntoTheBlock’s Head of Research, emphasizes the role of FriendTech – a decentralized social network platform – in this significant increase. Describing itself as “the marketplace for your friends,” FriendTech is integrated into the Base blockchain.

The increasing appetite for FriendTech’s offerings has played an instrumental role in this development. The past week saw FriendTech’s daily transactions peak at 529,000. Factors such as user engagement to accrue points for impending airdrops have contributed to this spike.

FriendTech’s Influence on Base’s Momentum

The introduction of FriendTech in August had a profound ripple effect on the Base blockchain’s metrics, propelling the daily active user count to unparalleled numbers. By the end of August, the Base blockchain was recording an impressive average of 15.88 transactions every second, outpacing Ethereum and other noteworthy layer 2 blockchains like Arbitrum and Optimism.

However, FriendTech’s transactions did witness a dip post their initial surge, plummeting from a peak of 525,000 in early August to a mere 51,000 by month-end. Base also mirrored this trend. IntoTheBlock posits that this ebb and flow are intrinsically linked to the evolving intricacies of Ethereum’s layer 2 systems.

Ethereum’s Layer-2 Ecosystem: A Changing Landscape

As Ethereum’s layer-2 solutions become more sophisticated, different players are carving out niche spaces for themselves. Base, buoyed by Coinbase’s widespread influence, has positioned itself as the preferred layer 2 network, evident by its distinct addresses and transaction numbers. Social applications, like FriendTech, have found fertile ground on Base, benefiting immensely from the network’s capabilities.

In a significant departure from historical trends, FriendTech’s success did not overload and lead to exorbitant fees on the Ethereum network, a recurring issue during past cryptocurrency surges.

This points to an encouraging trend. The move to amplify blockchain’s scalability through complementary “layer-2” networks, like Coinbase’s Base, is showing tangible positive outcomes. The traction that Base has gained since its August debut, notably in the South African market, underscored by FriendTech’s integration, reflects the evolving and promising landscape of the blockchain and cryptocurrency domain.

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Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za

Tags: Coinbase