DMR News

Advancing Digital Conversations

Base Network’s Daily Transactions Soar to 2 Million Post-Dencun Upgrade

ByDayne Lee

Mar 20, 2024

Base Network’s Daily Transactions Soar to 2 Million Post-Dencun Upgrade

The Coinbase Ethereum layer-2 network, Base, experienced a significant surge in daily transactions, reaching a new peak of 2 million on March 16, shortly after implementing the Dencun upgrade. This remarkable increase signifies a momentous shift in activity and user engagement on the platform.

Unprecedented Growth in Transactions and Users

Prior to the upgrade, Base’s daily transaction volume hovered around 440,000. However, this figure escalated to 1.1 million the day following the Dencun upgrade and continued its upward trajectory, culminating in 2,064,920 transactions on March 16. Alongside this surge, the platform also witnessed a dramatic rise in daily new users, with figures soaring to 666,866 on the same day—a 3,200% leap from the days preceding the upgrade.

Fee Reduction Sparks Activity

A significant catalyst behind this surge is the substantial reduction in transaction fees on Base, attributable to the efficiencies introduced by the Dencun upgrade. Post-upgrade, average transaction fees on Base have plummeted by over 60%, as reported by Blockscout. This reduction has made Base an increasingly attractive option for users seeking cost-effective transaction solutions within the Ethereum layer-2 ecosystem.

Base’s Position in the Layer-2 Landscape

Since its launch in August by Coinbase, Base has rapidly ascended to become the sixth-largest network within the Ethereum layer-2 ecosystem. Boasting a total value locked (TVL) of $1.46 billion, it commands a 4.1% market share of layer-2 networks, according to data from L2beat.

The Impact of the Ethereum Dencun Upgrade

The Dencun upgrade, which introduced EIP-4844, has played a pivotal role in reducing layer-2 transaction fees by facilitating data blobs or proto-danksharding. This enhancement in L2 data availability has led to gas cost reductions of up to 90% for some networks. Following the upgrade, average transaction fees on prominent layer-2 networks like Arbitrum, Optimism, Base, and zkSync Era have decreased by 60% to 90%, as indicated by Dune Analytics.

Despite the impressive gains by Base, Arbitrum and Optimism continue to lead the layer-2 market, with a combined TVL of $23 billion, translating to market shares of 42% and 23%, respectively.

Layer-1 Gas Fees and Market Observations

The upgrade has also had a noticeable impact on decentralized exchanges, with Uniswap’s Optimism deployment experiencing token swap gas fees as low as $0.01, a development highlighted by protocol founder Hayden Adams. Meanwhile, Ethereum’s layer-1 gas fees have remained elevated due to the asset’s fluctuating price, with current costs for ETH transfers around $2.1, USDC transfers approximately $5, and swaps on Uniswap about $16, as per

Daily Transactions on BaseIncreased to 2,064,920 post-upgrade
Daily New Users on BaseSpiked to 666,866 on March 16
Transaction Fee ReductionOver 60% decrease post-Dencun upgrade
Total Value Locked on Base$1.46 billion, 4.1% market share
Impact of Dencun Upgrade60% to 90% fee reduction across layer-2s
Ethereum Layer-1 Gas FeesVaried, with Uniswap swaps around $16

The remarkable growth in Base’s activity following the Dencun upgrade underscores the dynamic nature of the Ethereum layer-2 ecosystem and the continuous pursuit of scalability and efficiency improvements. As the landscape evolves, the interplay between technological advancements and user adoption will remain crucial in shaping the future trajectory of Ethereum and its layer-2 networks. This period of innovation not only enhances the user experience but also broadens the horizon for decentralized applications, setting the stage for further advancements in blockchain technology and digital finance.

Featured image credit: Tada Images via Adobe Stock

Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.

Leave a Reply

Your email address will not be published. Required fields are marked *