Coinbase (NASDAQ:COIN)'s layer 2 blockchain, Base, recorded an all-time high in daily transactions on Thursday, September 14, 2023. The newly launched blockchain platform saw 1.88 million transactions, surpassing the combined transaction volumes of its layer 2 rivals, Arbitrum and Optimism, according to data from IntoTheBlock.
The surge in activity on Base was not driven by decentralized finance (DeFi) applications or non-fungible token (NFT) marketplaces. Instead, a significant portion of usage was attributed to the new social application, Friend.tech, said Lucas Outumuro, head of research at IntoTheBlock.
Friend.tech is a decentralized social network platform built on Base and describes itself as “the marketplace for your friends.” The platform saw increased usage over the last week, with its daily transactions also reaching an all-time high at 529,000. The rise in activity was partly attributed to users aiming to accrue points for an upcoming airdrop.
Base witnessed a surge in activity following the launch of Friend.tech in early August. The launch drove daily active users to a record high and resulted in Base averaging a record high of 15.88 transactions per second, surpassing Ethereum and other rival layer 2 blockchains such as Arbitrum and Optimism.
However, transactions on Friend.tech saw a significant decline after its initial surge, dropping from a peak of 525,000 in early August to 51,000 at the end of August. Base's daily transactions also experienced a downturn over the same time period.
IntoTheBlock attributes the recent uptick in activity on Base to the evolution of Ethereum's layer 2 ecosystems with players becoming “more specialized in their own niche.” It further states that "Base has quickly become the L2 with the most unique addresses and transactions, fueled by Coinbase's wide reach, making it a strong candidate for social applications like FriendTech to thrive."
Analysts have noted that the rise in Friend.tech activity did not result in congestion and increased fees on Ethereum, as has been the case with previous frenzies. This could be an indication that efforts to scale the blockchain by fostering supplemental “layer-2” networks, like Base, are proving successful.
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