Base Accounts for Majority of Ethereum Ecosystem Activity

While the sentiment surrounding Ethereum mimics bear market vibes, one of its Layer 2 networks is scaling new heights.

Base, the Layer 2 built by centralized exchange and mammoth crypto custodian Coinbase, has topped all-time highs for weekly active wallets, weekly transactions, and trades on decentralized exchanges (DEXs).

According to data from Dune, active wallets per week on Base hit 6.7 million, while weekly transactions topped 31.9 million, which is higher than Polygon, the most used Layer 2 until Base came along. Polygon transactions have plummeted, dropping to 17.5 million from 31 million in March.

Base’s apparent allure for traders can be attributed to Coinbase’s clear-cut dominance in the industry. The U.S.-based exchange has more than 70 million users, many of whom are eager to use crypto in more ways than just buying and selling tokens. DeFi users interested in faster transaction times and lower fees are also flocking to Base.

Trades on decentralized exchanges are overly dominated by Base users. More than 3.5 million DEX traders use the network, followed distantly by Ethereum with 115,000 and Optimism in third place with 96,000.

Base has been a rocketship since it launched in mid-2023. The Layer 2’s second Onchain Summer campaign ended on Aug. 30 and drove more than eight times as much activity as the year prior.

Users minted 24 million on-chain assets, drawing in more than $5 million in revenue for participating developers.

But that’s not all.

Coinbase’s creation has been absorbing users from nearly every other Layer 2 in the Ethereum ecosystem. Active wallets on Polygon have fallen off a cliff, down to 2.1 million from 4.1 million in June; Arbitrum has 1.2 million active wallets, down from 4 million in April; and ZKsync has gone down to 400,000 from 1.9 million in June.

Where has everyone gone? Base. Coinbase appears to have a winner on its hands, at least for now.