The Rise of Base: A Dominant Ethereum Layer 2 Network

Base, the Ethereum Layer 2 network incubated by Coinbase, has been making significant strides in the Layer 2 network landscape. Recent data from IntoTheBlock has revealed that Base now has nearly 40% more daily active addresses compared to its competitors Arbitrum and Optimism. This growth signifies Base’s increasing dominance in the Layer 2 space and suggests that it is capturing a larger share of off-chain transactions within the Ethereum ecosystem.

The surge in Base’s network activity can be attributed to its ongoing “Onchain Summer” campaign, aimed at promoting development on the platform. Initially introduced in 2023 to drive adoption of the layer-2 network, the “Onchain Summer” event was a huge success. During the month-long initiative, 268,000 wallets minted over 700,000 NFTs, and more than $242 million in crypto was bridged to Base, attracting over 130,000 unique daily users.

Building on the success of last year’s campaign, Base has brought back the summer event for 2024. The platform aims to boost on-chain creativity and encourage developers to build on the blockchain. With 600 ETH, equivalent to around $2 million, set aside in rewards for participants, Base is incentivizing further growth and innovation within its ecosystem.

This week, the Base network introduced “Basenames” to simplify on-chain identities by allowing users to convert complex wallet addresses into readable names. Leveraging the Ethereum Name Service (ENS) infrastructure, Basenames operate similarly to subdomains, enabling ENS domain owners to create and manage multiple subnames. This feature is expected to enhance user interaction within the Base ecosystem.

To ensure fairness in the registration process, Basenames will be offered through a Dutch auction. This approach prevents bots from dominating the name registration process, giving all users an equal opportunity to secure their desired names. By prioritizing fairness and accessibility, Base is fostering a more inclusive and user-friendly environment for its growing community.