Base, a Ethereum layer-2 network backed by Coinbase, is experiencing rapid growth, showcasing its significant adoption and attention within the crypto community.

Base’s growth coincides with the launch of its Smart Wallet by the exchange, aimed at bringing over 1 billion users onto the blockchain.

The network has recorded the highest daily transactions among Ethereum layer-2 networks recently, surpassing competitors like Arbitrum and Optimism. According to data from GrowThePie, Base processed 2.7 million transactions on June 4, marking a 7.1% increase compared to Arbitrum’s 1.89 million transactions.

Base also leads in transaction speed, handling an average of 31.37 transactions per second (TPS), compared to Arbitrum’s 22 TPS, as reported by L2Beat.

This surge in network activity has driven a substantial rise in the total value of assets locked (TVL) on Base’s layer-2 network, which increased by 8.68% to $7.64 billion. This TVL places Base closely behind Optimism, which holds $7.76 billion. Currently, Optimism and Base collectively control over 32% of the layer-2 market, with Arbitrum holding a 40% share.

Moreover, according to a Dune Analytics dashboard, Base has been the highest-earning layer-2 network in recent months, generating $16.88 million in March, $12.90 million in April, and $6.98 million in May.

Experts attribute Base’s increased activity to the Dencun Upgrade implemented in March, which introduced proto-danksharding and significantly reduced gas fees for layer-2 solutions. This upgrade spurred heightened bot trading activities on Base, contributing to its transaction fee levels compared to competitors.

Coinbase’s Smart Wallet aims to address blockchain adoption challenges by simplifying onboarding processes and reducing transaction complexities. Initially supporting eight networks, including Base, Ethereum, and others, the wallet facilitates seamless use of Coinbase balances on-chain in a secure, self-custodial manner.