Coinbase's Layer 2 network, Base, is on a tear! Daily trading volume surged over 50% to a record $356 million on Tuesday, eclipsing its previous high.

Fueled by Dencun: This explosive growth coincides with the recent Dencun upgrade on Ethereum, which significantly slashed transaction fees on Layer 2 solutions. This has made Base a highly attractive and cost-effective option for interacting with the Ethereum blockchain.

Not Just Hype: While Dencun provided the initial spark, Base's momentum seems to be self-sustaining. The network continues to experience high activity levels, even with a temporary uptick in transaction fees.

New Highs, New Users: Base's total value locked (TVL) has also hit a record high of $745.3 million, reflecting the growing amount of crypto assets locked on the network. Daily transactions have soared as well, reaching 1.65 million, and nearly 130,000 new users joined the network on Wednesday alone.

Leaving the Competition in the Dust: For now, Base has surpassed rivals like Arbitrum and Optimism in terms of on-chain activity, solidifying its position as a leading Layer 2 network.

Looking Ahead: More Growth on the Horizon? Analysts predict continued growth for Base, fueled by Coinbase's efforts to connect its vast user base to the world of decentralized finance (DeFi). The recent launch of Coinbase's smart wallet further underscores this commitment, allowing users to seamlessly interact with DeFi applications directly from their Coinbase accounts.

Base is making waves in the Layer 2 space, and its future looks bright. Whether it can maintain its lead remains to be seen, but one thing's for sure: Base is a force to be reckoned with.