Coinbase's Base Protocol Shatters Records Amid Meme Coin Frenzy

Coinbase's Layer 2 protocol, Base, has witnessed a record-breaking surge in trading volume, surpassing $1.2 billion daily. Driven by Uniswap and a meme coin craze, Base has seen a rise in daily active users to over 200,000 and a doubling of assets on the platform to over $3 billion, notably with an increase in stablecoin holdings. However, Base's growth has been marred by a spike in phishing scams, with users losing $3.35 million in March alone, prompting concerns about security and the need for improved user education.

Coinbase's Base Protocol Surges to Record-Breaking Trading Volume, Witnessing a Surge in Meme Coin Frenzy

March 31, 2023

New York, NY - Coinbase's Layer 2 protocol, Base, has experienced a meteoric rise in trading volume, reaching an unprecedented $1.2 billion in daily transactions, propelled primarily by the dominance of Uniswap and a surge in meme coin trading.

This substantial influx of trading activity on Base has been accompanied by a significant increase in daily active users (DAU), now exceeding 200,000. The popularity of meme coins has played a pivotal role in driving this surge, resulting in elevated network fees despite the recent Dencun upgrade designed to optimize platform performance.

The total value of assets held on the Base platform has also witnessed a remarkable surge, doubling to over $3 billion within the past month. Token Terminal, a renowned blockchain analytics firm, has reported a notable increase in the number of stablecoins, such as USDC, stored on Base, approaching a staggering $1 billion.

Shadowed Side of Base's Growth: Phishing Scams Escalate

While Base has experienced exponential growth, it has also faced challenges. Phishing scams have emerged as a significant concern, with a staggering 1,900% rise in stolen cryptocurrency from January to March. Scam Sniffer data reveals that Base users lost approximately $3.35 million to phishing alone in March.

The surge in phishing attacks on Base parallels the platform's rapid growth, largely attributed to the recent craze surrounding meme coins like Brett (BRETT) and Degen (DEGEN). The hype surrounding these tokens has propelled Base's total value locked (TVL) beyond $3.2 billion.

Despite the rise in phishing scams, the overall amount of stolen cryptocurrency has notably decreased by 48%. In March, it reached $187.2 million, including $98.8 million that was successfully retrieved during that period.

Heightened Security Amidst Resurgent Cryptocurrency Market

In light of the recent resurgence of the cryptocurrency market, it is crucial to acknowledge the uptick in phishing scams. This underscores the urgent need for robust security measures. Moreover, it is imperative to enhance user education and raise awareness of security best practices, particularly when handling cryptocurrencies.

Coinbase acknowledges the importance of security and is actively working to mitigate the risks associated with phishing scams. The company emphasizes the significance of implementing strong security measures and educating users on safeguarding their digital assets.

Base's remarkable growth and the associated surge in trading volume highlight the growing adoption of Layer 2 protocols in the cryptocurrency ecosystem. However, the challenges posed by phishing scams necessitate vigilance and ongoing efforts to enhance security measures.