According to insights from IntoTheBlock, major participants in the Ethereum Layer 2 (L2) sector are increasingly specializing, with Base emerging as a prominent leader.
Among these participants, Base offering has surged ahead by boasting the highest number of distinctive addresses and transactions, benefiting greatly from Coinbase’s extensive network.
This shift has created a favorable landscape for social applications like FriendTech to thrive, reshaping the DeFi ecosystem.
Ethereum's L2 landscape is witnessing a surge of specialization among its key players.
Base is leading with the highest number of unique addresses and transactions, a momentum driven by Coinbase's expansive reach. Perfect for social apps like FriendTech to flourish.
— IntoTheBlock (@intotheblock) September 15, 2023
According to recent findings by IntoTheBlock, Base solution has experienced significant growth, strengthening its position in the evolving L2 ecosystem.
Notably, Bitcoin network fees have increased by 40%, reflecting heightened blockchain activity. In contrast, Ethereum has observed a 4% decrease in fees. This is due to reduced demand on the Mainnet despite the growing adoption of Layer 2 solutions.
It has achieved an unprecedented milestone, surpassing Arbitrum and Optimism Mainnet in terms of transaction volume. Furthermore, over the past month, it has consistently maintained an average of 888,000 daily active addresses, establishing its dominance with nearly 60% market share among those utilizing Optimism roll-ups.
Additionally, this platform has successfully attracted a total value of $380 million, positioning itself firmly among the top 10 chains in the DeFi sector.
FriendTech Fuels Base’s Growth
Interestingly, the increased activity on Coinbase’s Layer 2 solution cannot be attributed solely to DeFi applications or NFT marketplaces. Instead, most of its usage is linked to an innovative social application called FriendTech.
FriendTech offers users the chance to create accounts connected to their Twitter profiles. Users can buy, sell, and exchange keys generated by these accounts, bringing potential benefits tied to their social profiles.
Influencers are motivated to join because they can profit from the increasing value of these keys and earn a share of the trading fees. This participation contributes to FriendTech’s revenue growth. The company projects that this platform will achieve an annual revenue of $93 million.
The emergence of FriendTech has swiftly garnered a user base of over 100,000 individuals within mere weeks of its launch. In addition, Coinbase’s rapid growth bolsters its Layer 2 solution reach and market standing.
However, it is important to recognize the rapid evolution of Ethereum’s Layer 2 ecosystem. Each participant is carving out their unique role in this space. Coinbase’s Layer 2 solution leads in terms of unique addresses and transactions, while Arbitrum excels in transaction volume.
Furthermore, Optimism is establishing itself as the foundational infrastructure for various other Layer 2 solutions like Mantle. This diversity and varying strengths highlight the immense potential within the Ethereum Layer 2 space.