Base, a Layer-2 network supported by Coinbase, is seeing rapid expansion, reflecting substantial adoption and attention within the crypto community.

Base’s growth coincides with the launch of its Smart Wallet by Coinbase, designed as a self-custodial solution to onboard 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. Data from GrowThePie shows that Base processed 2.7 million transactions on June 4, a 7.1% increase compared to Arbitrum’s 1.89 million transactions.

L2Beat data confirms this uptick in activity, indicating that Base processes an average of 31.37 transactions per second (TPS), compared to Arbitrum’s 22 TPS.

This surge in activity has led to significant growth in Base’s Total Value Locked (TVL), which now stands at $7.64 billion, closely approaching Optimism’s TVL of $7.76 billion. Currently, Optimism and Base control 16.42% and 16.17% of the Layer-2 market share, respectively, while Arbitrum holds 40%.

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

Experts attribute the increased network activity on Base to the Dencun Upgrade implemented in March, which introduced proto-danksharding, significantly lowering gas fees for Layer-2 solutions.

Coinbase’s Smart Wallet aims to simplify the onboarding process onto Base and other networks, making it easier and more cost-effective to use Coinbase balances on-chain.