Base, a Layer 2 scaling solution by Coinbase has observed a surge in usage of the chain, amidst decline in fees. Several applications on the Layer 2 chain contributed to the rise in activity.
Base recently announced its plans for further decentralization with an upcoming testnet launch of “fault proofs.”
Optimism based Layer 2 chains use Fault proofs to prevent operators from passing inaccurate transaction data to the underlying Layer 1. In Base’s case this would prevent the Layer 2 chain’s operators from passing false data to Ethereum and further decentralize the withdrawal mechanism of the scaling solution.
Coinbase’s scaling solution Base is preparing to debut fault proofs, a mechanism to ensure that inaccurate information is not passed down to the Ethereum chain, on its Base Sepolia testnet in mid-July.
Per the official documentation, the implementation will boost the following:
Base has observed a surge in its utility as fees declined from Q1 to Q2 2024.
Data from crypto intelligence tracker TokenTerminal shows that from Q1 to Q2 2024, while there was a decline in fees for users on Base, there was a spike in usage. Several applications contributed to the increase in utility, including Uniswap, Frenpet, 1inch, Circle and Tarot Finance among others.
Base transaction activity and fees
The rising activity signals demand for the chain among users, and its increasing relevance among market participants.