Base, an Ethereum layer 2 network nurtured by Coinbase, the prominent centralized cryptocurrency exchange, has witnessed a surge in user metrics following the Dencun upgrade on Ethereum on March 13th, significantly reducing transaction fees by nearly 98% on layer 2 networks.

The Dencun upgrade introduced nine distinct Ethereum Improvement Proposals (EIPs), with EIP 4844 being the primary one, which drastically cut down transaction costs on layer 2 networks. EIP 4844 introduced blobs, special transaction formats that segregate layer 2 network transactions from standard network activities on the mainnet Ethereum network. This upgrade has not only alleviated congestion but also reduced transaction costs.

Furthermore, it has led to the median transaction fees on Base hitting the lowest point among layer 2 networks. The cost for swapping on popular decentralized crypto exchange Uniswap currently stands at around $0.0018, while transferring between digital wallets costs $0.004. Overall, swapping on Base is 99.9% cheaper than on the Ethereum network and nearly 98% cheaper than Arbitrum, the largest Layer 2 network by TVL (total value locked).

Base's user metrics skyrocketed post the Ethereum Dencun upgrade, reaching an all-time high of over 855,000 active users on March 16th. Over 2.1 million transactions were processed in a single day, setting another all-time high. At present, cryptocurrency assets worth $709 million are deposited on the Base blockchain network, marking another milestone.

These developments have propelled Base to the 11th position among other blockchains by the total value of digital assets deposited and to the 4th spot in terms of Ethereum rollup.

The decentralized Aerodrome crypto exchange ranks as Base's top protocol in terms of the total value of cryptocurrency assets, with over $310 million deposited and trade volumes exceeding $482 million per week, setting a new all-time high. Additionally, the exchange's native token, AERO, surged by 19% last week.

Despite these advancements, users anticipate further improvements from Base, particularly following the release of the smart wallet by Coinbase. Base's founder, Jesse Pollack, introduced the wallet on March 1st via social media, claiming it to be one of the final pieces of Base to onboard thousands of users worldwide onto the chain.

Although the wallet is currently in its testing phase, its launch will enable traders on the Coinbase platform to utilize their balances for on-chain trading, significantly enhancing the user experience and granting access to centralized tokens, apps, and NFTs not available on the crypto exchange. This development is poised to attract many new users to conduct transactions on-chain for the first time, making Base one of the primary beneficiaries of this advancement due to its close association with Coinbase.