Dencun Upgrade Propels Base to Record 2M Daily Transactions: Here’s What You Need to Know
In a groundbreaking development, the Ethereum layer-2 network Base, backed by Coinbase, has reached a historic milestone, recording a staggering 2 million daily transactions on March 16. This remarkable surge in transaction volume comes hot on the heels of the much-anticipated Dencun upgrade, which has revolutionized the functionality and efficiency of the Base network.
Prior to the Dencun upgrade, Base was processing approximately 440,000 transactions per day. However, the implementation of the upgrade saw an exponential increase in transaction throughput, with daily transactions soaring to 1.1 million the day after the upgrade rollout. This trend continued to escalate in the ensuing days, culminating in the record-breaking figure of 2,064,920 transactions on March 16.
Notably, the surge in daily transactions has been accompanied by a meteoric rise in new users on the Base network. On March 16 alone, the platform welcomed a staggering 666,866 new users, marking an astounding 3,200% increase from the average observed in the days leading up to the Dencun upgrade.
A key catalyst behind this unprecedented growth has been the substantial reduction in transaction fees on the Base network following the implementation of the Dencun upgrade. Average transaction fees have plummeted by more than 60% since the upgrade, according to data from Blockscout. This significant reduction in fees has undoubtedly incentivized greater participation and utilization of the Base network, driving the surge in transaction volume and user adoption.
Launched by Coinbase in August, Base has swiftly emerged as a formidable player in the Ethereum layer-2 ecosystem. With a total value locked of $1.46 billion and commanding a 4.1% market share of layer 2s, Base ranks among the top-tier networks in the burgeoning layer-2 landscape, according to industry tracker L2beat.
The Dencun upgrade, facilitated by Ethereum Improvement Proposal 4844, has been instrumental in reshaping the dynamics of layer-2 transactions. By introducing innovations such as data blobs or proto-danksharding, the upgrade has significantly enhanced L2 data availability, resulting in substantial reductions in gas costs for participating networks. Average transaction fees on leading layer-2 networks, including Arbitrum, Optimism, Base, and zkSync Era, have witnessed declines ranging from 60% to 90% post-upgrade, according to data from Dune Analytics.
In conclusion, the Dencun upgrade has propelled Base to unprecedented heights, reaffirming its position as a leading player in the Ethereum layer-2 ecosystem. With record-breaking transaction volumes, surging user adoption, and substantial fee reductions, Base is poised to play a pivotal role in shaping the future of decentralized finance (DeFi) and blockchain technology.