Coinbase’s Layer 2 foundation stands out as the best choice for New Capital

Layer 2 networks have witnessed massive activity this year, even as their native tokens fell amid intense market-wide volatility. These solutions have witnessed relatively constant activity since the beginning of the year.

However, IntoTheBlock’s latest analysis revealed that Base remains the main attraction for new capital.

Investors flock to the base

Over the course of this week, net ETH deposits in the Base have exceeded 6,500 ETH, which is a significant increase, according to the data shared by ITB. On the other hand, its rival Arbitrum only saw half of this figure. Optimism lagged even further with only a fifth of deposits received from the Base.

This trend suggests that despite growing interest in layer 2 scaling solutions, investors still see Base as the preferred choice for deploying their capital, possibly due to factors such as its established infrastructure or reliability perceived

“Despite activity leveling off among Layer 2, Base continues to attract the most new capital. Since Monday, net ETH deposits into Base have exceeded $6,500 ETH, more than double that of Arbitrum and five times more than Optimism.

Base, the Layer 2 Ethereum solution designed by Coinbase to expand its on-chain user base, was launched in August 2023. The ultimate goal is to ensure faster transactions at a lower cost.

Coinbase’s recently released Q1 report indicated that trading volume on the Layer 2 network exceeded that of its competitors, especially after Ethereum’s Dencun upgrade. In fact, DeFi crypto exchanges on Base witnessed daily trading volumes that exceeded $1 billion, significantly closing the gap between Base and the main centralized exchange Coinbase, which trades nearly 250 cryptocurrencies.

After Dencun’s upgrade, Base saw a rapid increase in its daily transaction volume and revenue. It even surpassed already established players like Optimisme and Arbitrum. This update essentially reduced the costs of layer 2 scaling chains like Base, leading to a significant increase in user engagement and transaction volume.

Increase in basic witnesses in the activity of fraudsters

Due to its growing popularity, the Base chain seems to be a target for scammers.

Sniffer scam data observed that two of the top 10 individual thefts occurred at this chain, accounting for 21% of total theft for the month. Since January, fraudster activity on the web has increased by nearly 1,900%, resulting in approximately $170,000 stolen through phishing scams. In April, almost 90% of stolen assets were ERC-20 tokens.

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