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Coinbase’s Base L2 Transactions and Activity Eclipses Layer-2 Leaders

2 mins
Updated by Kyle Baird
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In Brief

  • Coinbase's layer-2 network Base briefly surpassed Ethereum and leading layer-2 networks in activity due to Friend.Tech.
  • Almost all Base activity is driven by Friend.Tech, a SocialFi platform where users can trade Twitter account shares.
  • Despite controversy, DeFiLlama reports that Base has generated $5.3 million in network fees in just one week.
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The recently launched Coinbase layer-2 network Base is getting a lot of attention as transactions and activity surge. However, it is predominantly being generated by the controversial web3 crypto social media dApp Friend.Tech.

Base has briefly eclipsed the leading layer-2 networks in terms of network activity as transactions spike on the newly launched platform.

Base Boosted by SocialFi 

On August 23, Coinbase CEO Brian Armstrong commented on Base hitting 16 transactions per second. “Lots due to Friend.tech but still – incredible growth,” he added, admitting that one platform was driving activity.

Moreover, Base activity actually spiked above Ethereum’s briefly on August 21, according to L2beat.

Activity comparison—Base vs. Ethereum. Source: L2beat
Activity comparison—Base vs. Ethereum. Source: L2beat

The total activity on all layer-2 networks is around five times that on Ethereum in terms of transactions per second. 

Furthermore, Base TPS activity has surged over the past week enabling it to surpass layer-2 market leaders Arbitrum and Optimism.

Base Daily TPS Count. Source: L2beat
Base Daily TPS Count. Source: L2beat

DeFi researcher Thor Hartvigsen went to Artemis to get his data confirming the findings. Base had more daily transactions than both Arbitrum and Optimism combined on Monday.

Daily L2 Transaction Comparisons—Arbitrum, Base, Optimism. Source: X/@ThorHartvigsen
Daily L2 Transaction Comparisons—Arbitrum, Base, Optimism. Source: X/@ThorHartvigsen 

However, some are skeptical of the figures. “What percentage of those were successful transactions? I saw a lot of numbers about bots trying to front-run new accounts opening,” said developer A.J. Warner. 

Nearly all of the activity on Base is being driven by the Friend.Tech frenzy at the moment. The platform is a “SocialFi” or “DeSo” platform that allows users to buy and sell shares of certain Twitter accounts. 

According to DeFiLlama, it has generated $5.3 million in network fees in just seven days. Moreover, degens are piling into the platform in the hope of an airdrop from its reward points allocation.

Layer-2 Ecosystem Outlook 

The platform has already attracted a lot of criticism. Earlier this week, it was reported that several users found their Twitter IDs linked to their Ethereum wallets in an alleged data leak.

Arbitrum One remains the layer-2 market leader in terms of total value locked with $5.4 billion. This gives it a commanding market share of 55.5%. 

Optimism is the second most popular L2, with a TVL of $2.6 billion and a 27% share of the market. 

Base is still a minnow using these metrics as it has just $240 million locked and a 2.4% share of the L2 ecosystem. 

It is likely that when the Friend.Tech hype fades, Base activity will decline. That is, until the next degen-driven crypto-fad launches on it.

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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