In a recent statement, BIT head of enterprise marketing Joe Caselin attributed the increase in activity on Coinbase's Base network to Ethereum's recent DenCun upgrade.
Coinbase's Base Network Sees Increase in Activity Following Ethereum's DenCun Upgrade
This upgrade has significantly reduced transaction fees on Layer 2 networks, positioning Base as one of the most cost-effective options on the market for using Ethereum.
“The increase in activity on Coinbase's Base network can be attributed to the recent DenCun upgrade, which significantly reduces transaction fees on Ethereum's Layer 2 networks, making Base one of the most cost-effective options on the market for using Ethereum,” said Joe Caselin, head of corporate marketing at BIT. ” said.
The DenCun upgrade appears to have served as a catalyst for increased participation in the Base network. But the data shows that most of the activity occurred during a brief spike in average transaction fees above $1.
Despite the temporary increase in transaction fees, analysts remain optimistic about Base's continued growth. They predict that Coinbase's efforts to connect its users to the chain economy will drive greater adoption.
Recently, Coinbase introduced its smart wallet, which is expected to enable investors to redeem their crypto exchange balances directly on-chain.
This move by Coinbase is in line with the broader trend of increasing accessibility and usability in the cryptocurrency ecosystem.
Platforms like Base are poised to play a key role in expanding the reach of blockchain technology by providing users with seamless access to on-chain services and reducing transaction costs.
*This is not investment advice.