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Coinbase’s Base Network Sees Surge in Activity
Coinbase’s Ethereum layer 2 network, Base, is gaining significant traction, primarily driven by the anticipation surrounding its upcoming smart wallet. This development has piqued the interest of investors, resulting in a noticeable increase in the platform’s Total Value Locked (TVL).
Unprecedented Growth in TVL
Recent data indicates that Base has outperformed other layer 2 solutions such as Arbitrum and Optimism in terms of TVL over the past three months. Base’s TVL has surged by an impressive 465%, reaching a total of $7.41 billion. In comparison, Arbitrum saw a modest 13% increase, while Optimism experienced a 12% decline.
This substantial growth can be attributed to the implementation of EIP-4844 in March. This upgrade introduced proto-danksharding technology, significantly reducing the gas fees required for layer 2 transactions.
The Role of Coinbase’s Smart Wallet
One of the key drivers behind this surge is the imminent launch of Coinbase’s smart wallet. This innovative wallet aims to streamline the transition from decentralized exchange accounts to decentralized applications (dApps) on the Blockchain. By utilizing account extraction, the on-chain wallet simplifies user interactions and enhances user experience.
Account extraction allows users to delegate transaction authorization to a third party on either the Ethereum Blockchain or a layer 2 network. This feature enables gasless transactions, pre-consent payments, and one-click transactions, ultimately improving user accessibility.
While the official release date of the smart wallet on the mainnet has not been announced, the anticipation surrounding its launch is significant. The potential to attract new users, combined with the timing of its release alongside Base’s impressive growth, has generated considerable excitement within the crypto community.
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