Base TVL Skyrockets Past $2B, Ethereum Transaction Fees Plummet

Base TVL Surges Past $2 Billion, Ethereum Transaction Fees Tumble

Has Base, Coinbase's Layer-2 blockchain initiative, just hit a major growth spurt?

Base's TVL Growth: A Dencun-Driven Surge

According to L2Beat, Base's TVL has skyrocketed to $2.27 billion, a staggering 230% year-to-date gain. In just the past week, it's jumped nearly 50%.

The Dencun upgrade deserves much of the credit. It's slashed Layer-2 transaction fees, making Base a more budget-friendly option for Ethereum transactions. Even with a temporary spike in average fees above $1, activity has remained robust.

Dencun Upgrade: A Game-Changer for Layer-2

The Dencun upgrade, launched on March 13, aims to lower fees across multiple Layer-2 networks built on Ethereum. It's seen as a potential catalyst for developers seeking to scale Ethereum through these solutions.

Before Dencun, Base processed around 440,000 transactions daily, according to Dune Analytics. Post-upgrade, that number shot up to 1.1 million the next day and has continued to climb, reaching over 2.06 million on March 16.

Meanwhile, Base has seen an influx of new users, with over 666,000 joining on March 16 alone. That's a 3,200% increase compared to the average in the weeks leading up to Dencun.

Traffic Surge and Fee Challenges

Base Mainnet has been humming with activity, but it hasn't been without its hiccups. Some users have experienced transaction delays due to insufficient fees. Coinbase Wallet's lack of transaction cancellation features has also added to the challenges.

Base: The New Meme Coin Hub?

The activity surge has coincided with a resurgence in meme coin popularity. Solana has been the go-to platform for meme token launches due to its lower fees, easier trading, and cheap presales.

However, Dencun could change the game, potentially making Base the epicenter of the next meme coin frenzy.

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