As a researcher with extensive experience in the blockchain and cryptocurrency space, I have closely followed the developments in Layer 2 networks this year. The data reveals an intriguing trend: despite intense volatility and uncertainty across the broader market, Base continues to be the preferred choice for new capital among investors.
This year, there’s been a surge in activity for layer 2 networks, despite their native tokens facing significant downturns due to market volatility. Notably, these networks have maintained a consistent level of usage since the start of the year.
New money has continued to gravitate towards Base, according to recent findings by IntoTheBlock’s analysis.
Investors Flock to Base
This week, the amount of ETH transferred into the Base surpassed 6,500 ETH, representing a substantial growth based on ITB’s given data. In contrast, Arbitrum witnessed Ethereum deposits amounting to barely half that figure. Optimism trailed significantly behind with merely one-fifth of the deposits received by the Base.
The increasing popularity of Layer 2 scaling options hasn’t deterred investors from favoring Base as their go-to choice for investment. This preference may be attributable to Base’s well-established infrastructure and perceived dependability.
Although there has been equal amount of activity among Layer 2 solutions, Base stands out as the top magnet for new investments. Over the past few days, over 6,500 dollars worth of ETH has been deposited into Base, which is more than twice the amount deposited in Arbitrum and five times greater than Optimism.
I, as an Ethereum scalability analyst, am excited to share that Coinbase’s layer-2 solution, named Base, was debuted in the bustling month of August 2023. My objective, much like that of Coinbase, is to broaden the user base and enhance transactional efficiency while keeping costs minimal.
The Q1 report from Coinbase revealed that trading activity on its Layer 2 network outpaced its competitors, particularly after Ethereum’s Denver upgrade. Notably, decentralized finance (DeFi) crypto exchanges on Coinbase saw daily trading volumes exceeding $1 billion, narrowing the difference between Coinbase’s Layer 2 platform and its primary centralized exchange, which deals with approximately 250 cryptocurrencies.
After the Dencun update, Base experienced a significant surge in its daily transaction volume and revenue. Even surpassing the numbers of previously established competitors like Optimism and Arbitrum. This upgrade brought about substantial cost savings for Layer-2 scaling chains such as Base, leading to increased user interaction and transaction activity.
Base Witnesses Surge in Scammer Activity
Owing to its growing popularity, the Base chain appears to be a target for scammers.
Two of the largest individual heists, accounting for 21% of the total thefts in a given month, were identified on this particular chain by Scam Sniffer’s data analysis. Since the beginning of the year, there has been an alarming surge of approximately 1,900% in scammer activity on the network, leading to the theft of around $170,000 through phishing schemes. In the month of April alone, ERC-20 tokens made up nearly 90% of the assets that were stolen.
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2024-05-08 19:50