The Coinbase-developed layer-2 network, Base, built on Ethereum, recently achieved a remarkable milestone by temporarily recording the highest stablecoin transaction volume of any blockchain. Stablecoins are cryptocurrencies whose value is tied to stable assets, typically fiat currencies like the US dollar, making them less volatile than other cryptocurrencies. As a result, they are often used as a reliable unit for trading transactions within the crypto market. Stablecoin transaction volume refers to the total amount of stablecoin transactions executed on a specific blockchain network within a given period. High transaction volume often indicates strong trading activity and trust in that network.
Base sets stablecoin transaction record, surpassing major competitors
On October 26, Base reached a market share of no less than 30.06% of total stablecoin transaction volume, surpassing popular networks like Solana, Ethereum, and Tron for the first time. That same day, Base also set a new record in the number of transactions on its network, indicating strong growth in user activity and interest in this relatively new blockchain. With a share of 30% in stablecoin transactions, followed by Solana at 25%, Ethereum at 20%, and Tron at 16.7%, Base temporarily positioned itself as the largest player in stablecoin volume.
USDC and growing confidence in stablecoins on Base
Jeremy Allaire, CEO of Circle, the issuer of the stablecoin USD Coin (USDC), predicted that if this trend continues, USDC on Base could achieve a potential annual volume of as much as $6.6 billion. On the day of the record, USDC represented an impressive 62% of the total stablecoin volume on Base, while Tether (USDT) and the algorithmic stablecoin DAI accounted for 30% and 7.4%, respectively. This high share of USDC in transactions on Base shows that users trust the stability of this coin in the volatile crypto market.
Rising transaction volume on Base points to increasing popularity
The increase in Base‘s total transaction volume is no surprise. Since its launch, the network has experienced steady growth, and on October 26, Base hit a new record of 5.6 million daily transactions, marking a 20% increase in the past month. The rising activity indicates that Base is increasingly being seen as a reliable choice for transactions and applications within the decentralized crypto market.
Solana, Ethereum, and the rise of base: a new blockchain landscape
Historically, Solana has long been the market leader in stablecoin transactions, accounting for up to 60% of total transaction volume across major blockchains until mid-June. With an impressive total volume of $8.6 billion since the beginning of the year, Solana remains the annual leader, with Ethereum in second place at $6.1 billion. Although Base is still a relatively new platform, it has gained ground this month and even briefly surpassed Solana in daily transaction volume. Currently, Ethereum has the highest monthly market share at 25.6%, while Base and Solana are close competitors with 20.8% and 20.6% of stablecoin transaction volume, respectively.
What is Base? The importance of layer-2 scalability
Base is a layer-2 network developed by Coinbase and built on the Ethereum platform. Layer-2 networks are extensions of existing blockchains, in this case, Ethereum, designed to make transactions faster and cheaper by partially processing them outside the main blockchain. Thanks to this approach, layer-2 networks like Base can handle more transactions per second, enabling users to experience lower costs and complete their transactions faster. For many users and developers, Base offers the benefits of the stability and security of the Ethereum network combined with the improved scalability and efficiency needed to make blockchain more accessible. This makes Base an attractive choice for both beginners and experienced users seeking reliability and speed in their crypto transactions.
Base‘s progress highlights its potential in the blockchain market
These recent achievements by Base not only underscore the network's growing popularity but also its potential to further strengthen the crypto market as a reliable and innovative player. The combination of high transaction numbers and a growing market share in stablecoins demonstrates that Base is beginning to establish a significant position in the increasingly competitive world of blockchain transactions and stablecoin activity. With its focus on scalability and reliability, Base could play a crucial role in the future of the crypto market and decentralized applications.