Base Hits Milestone with Over 2 Million Daily Active Addresses
Base, the Ethereum layer-2 protocol developed by the popular crypto exchange Coinbase, has recently achieved a significant milestone by surpassing over 2 million daily active addresses. This surge in activity is attributed to the successful launch of Coinbase Wrapped Bitcoin (cbBTC) and the introduction of the Base Name Service (BNS).
Coinbase introduced cbBTC on Base and Ethereum on September 12, following the integration of the Lightning Network for bitcoin transfers on the protocol. This wrapped token, backed 1:1 by BTC and held by the exchange, provides users with access to various decentralized finance (DeFi) applications, protocols, and features. In less than two weeks post-launch, cbBTC has attracted over 3,500 users, settling an average of $472 million in BTC on Base daily.
While cbBTC has undoubtedly contributed to the growth of Base’s daily active addresses, the excitement surrounding the Base Name Service (BNS) has played an even more significant role. Coinbase unveiled BNS on August 21, allowing users to establish their identity on the network by registering human-readable names for their addresses, similar to the Ethereum Name Service (ENS). This initiative aims to provide a unified name service and on-chain identity experience for all users on Base.
Basenames Driving Growth
Just three days after the launch of Basenames, the number of daily active addresses on Base soared to a record 1.05 million. This figure has since doubled and surpassed the 2 million mark within a month. Data from the Ethereum layer-2 analytics platform GrowThePie reveals that Base currently commands 70% of the active addresses among layer-2 networks on Ethereum, outpacing competitors like Arbitrum at 9.6%. Base’s dominance over Arbitrum began in late June, with over 6.8 million active addresses observed in the past week, compared to less than 943,000 on Arbitrum.
Despite the growth spurred by cbBTC and BNS, Coinbase has faced criticism, particularly regarding the lack of transparency surrounding its Bitcoin reserves and the user agreement for cbBTC. Concerns have been raised within the crypto community regarding the exchange’s commitment to fully reimburse users in the event of BTC loss due to malicious activities or unforeseen circumstances.
Overall, Base’s achievement of exceeding 2 million daily active addresses signifies a significant milestone for the protocol, highlighting its growing popularity and impact within the Ethereum ecosystem. As Base continues to innovate and expand its offerings, it is poised to further solidify its position as a leading layer-2 solution for decentralized applications and services.
