Base, Coinbase's Layer 2 blockchain, has reached a new milestone with its total value locked (TVL) hitting an all-time high.
Base, Coinbase's Layer 2 blockchain, has reached a new milestone with its total value locked (TVL) hitting an all-time high. This surge comes as investors eagerly await the launch of Coinbase’s new smart wallet. The spike in activity and TVL on Base began after the implementation of EIP-4844 in March. This upgrade introduced proto-danksharding, significantly reducing gas costs on Layer 2 solutions like Base, thereby making transactions more efficient and affordable.
Over the past 90 days, Base has seen remarkable growth, far outpacing rivals like Arbitrum and Optimism. During this period, Base’s TVL rocketed by 465%, climbing from $1.3 billion to $7.41 billion. In contrast, Arbitrum experienced a modest 13% increase, while Optimism saw a 12% decline in TVL.
Coinbase’s new smart wallet is a key factor driving this growth. Designed as a browser-based onchain wallet, it aims to provide a seamless transition for users moving from centralized exchange accounts to decentralized applications (dApps). The wallet leverages account abstraction, allowing users to engage in transactions on Ethereum or a Layer 2 without initiating them directly. This feature facilitates a more user-friendly onchain experience, enabling functionalities like gasless transactions, preauthorized payments, passkey signatures, and one-click transactions.
The anticipation surrounding Coinbase’s smart wallet is high, with many speculating that it will significantly boost DeFi adoption among Coinbase's existing user base. Jesse Pollak, a leading contributor to Base, expressed optimism on social media, predicting that by the end of the year, over 90% of active onchain users will be utilizing smart wallets.
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