Base's rise in the Ethereum Layer-2 space: high transaction speed, profitability, and integration with Coinbase drive its success.
In the fast-paced realm of cryptocurrency, Base has emerged as a notable player. While many Ethereum Layer-2 networks are seeing a downturn, Base seems to be thriving. This article explores the reasons behind Base's success, its integration with Coinbase, and how it is influencing the crypto payment landscape.
Ethereum Layer-2 networks were designed to solve the mainnet’s scalability issues by increasing transaction speeds and lowering costs. However, recent statistics show that most of these networks are experiencing a decline in usage. This includes big names like Arbitrum and Optimism.
What’s interesting is that Base, which is incubated by Coinbase, has seen a significant uptick in activity over the past few months. This is particularly noteworthy given that other networks are struggling.
Base's integration with Coinbase appears to be one of the main reasons for its rapid adoption. With access to an extensive user base—over 110 million verified users—Base has managed to create an efficient ecosystem for both new and seasoned crypto users.
Coinbase’s tools have made it easier for people to navigate and utilize Base, contributing not just to higher transaction counts but also making the network profitable. The seamless experience has attracted a diverse range of users.
Base offers companies accepting crypto payments an efficient and transparent solution. The network processes transactions quickly while keeping costs low compared to traditional payment methods.
Many businesses are beginning to see the advantages of using crypto for transactions:
Accepting crypto can lead to faster transactions, lower fees (Coinbase Commerce charges just 1%), enhanced security, reduced chargeback risks, and even access to new customer bases that prefer digital currencies.
While Base is on the rise, other Ethereum Layer-2 networks are witnessing significant declines in activity levels. For example, Arbitrum recently recorded only 429k active addresses—a far cry from its peak of over 1 million earlier this year.
Linea is facing similar challenges; its user count dropped by 87% from its peak just a few months ago.
In contrast, Base recorded an all-time high of nearly 1.52 million active addresses on October 4th alone.
Despite declining activity levels for many networks, profitability remains high across the board. On-chain data reveals that most Layer-2 solutions have been quite lucrative over the past six months—with Base leading in revenue generation.
Base generated approximately $26 million during this period; however, it’s important to note that their profits have decreased significantly due to low fee environments—resulting in a staggering 98% profit margin!
Other networks like Arbitrum One also made substantial profits ($10 million), but their margins were considerably lower compared to those of Base.
Base's unique position within the Ethereum ecosystem serves as an example of strategic partnerships coupled with user-centric design leading towards long-term success—even amidst challenging conditions faced by others!
As we move forward into this evolving landscape where more companies embrace crypto payments—it seems likely that platforms such as BASE will play pivotal roles facilitating transitions unlocking opportunities growth innovation!
