Base’s Daily Active Addresses Exceed 2 Million
The number of daily active addresses on Base has exceeded 2 million, marking a significant milestone for the protocol in the DeFi space. This surge in user engagement can be attributed to two key developments: the introduction of Coinbase Wrapped Bitcoin and the Base Name Service.
The Dynamic Cryptocurrency Landscape
The cryptocurrency landscape is continually evolving. The recent spike in daily active addresses on Base, an Ethereum layer-2 protocol developed by Coinbase, exemplifies this dynamic nature. This significant uptick in activity can primarily be attributed to:
- The launch of Coinbase Wrapped Bitcoin (cbBTC)
- The unveiling of the Base Name Service (BNS)
Exploring New Horizons with cbBTC
On September 12, Coinbase expanded its offerings on Base and Ethereum by introducing cbBTC, a token that encapsulates Bitcoin in a format compatible with Ethereum’s decentralized applications. This innovation allows Bitcoin holders to engage directly with DeFi platforms without relinquishing their investment in Bitcoin. Each cbBTC token represents a Bitcoin, backed on a 1:1 basis and securely held by Coinbase.
The deployment of cbBTC has facilitated a seamless bridge between Bitcoin and DeFi ecosystems, attracting a considerable user base. Within just two weeks of its launch, cbBTC has seen:
- Over 3,500 users
- An average daily settlement of around $472 million worth of Bitcoin on Base
This integration of Bitcoin into the Ethereum layer-2 protocol through cbBTC has significantly driven user activity, reflected in the swelling numbers of daily active addresses.
The Impact of Base Name Service (BNS)
While cbBTC has significantly influenced Base’s metrics, the launch of the Base Name Service has sparked even more enthusiasm across the cryptocurrency community. Implemented on August 21, BNS revolutionizes how users interact with blockchain addresses by:
- Allowing the registration of human-readable names for blockchain addresses, similar to the Ethereum Name Service (ENS)
- Simplifying transactions and interactions within the Base ecosystem
This service enhances the user experience by eliminating the need to handle cumbersome hexadecimal addresses, fostering a sense of community and belonging among users with personalized blockchain identities.
The introduction of BNS marked a noteworthy milestone, evidenced by the explosive growth in daily active addresses, doubling from 1.05 million shortly after its launch to over 2 million within a month.
Base’s Dominance in Layer-2 Networks
Current data from GrowThePie, an analytics platform focused on Ethereum layer-2 networks, indicates that Base now constitutes 70% of active addresses across all layer-2 solutions, with its closest competitor, Arbitrum, accounting for just 9.6%. This dominance underscores Base’s pivotal role in shaping the layer-2 landscape and its growing acceptance among the crypto community.
Controversies Surrounding cbBTC
Despite its burgeoning popularity, cbBTC has not been without controversies, particularly concerning:
- Coinbase’s transparency regarding its Bitcoin reserves
- The user agreement’s implications on reimbursement protocols in adverse events
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