Here’s why daily active addresses in the base have increased beyond 2 million

Base, the Ethereum layer 2 protocol developed by crypto exchange Coinbase, has recently witnessed an increase in its activities, leading to a significant increase in its daily active addresses.

According to data from the chain analytics platform IntoTheBlock, the increase in daily active Base addresses can be linked to the launch of Coinbase Wrapped Bitcoin (cbBTC) and the introduction of the Base Name Service (BNS).

Increase in base active addresses

Coinbase launched cbBTC on Base and Ethereum on September 12, months after integrating the Lightning network for bitcoin (BTC) transfers into the protocol. The wrapped token is backed 1:1 by BTC and retains its crypto exchange. It gives users access to various decentralized finance (DeFi) applications, protocols, use cases and features.

In less than two weeks after its launch, cbBTC has gained more than 3,500 users, with an average of $472 million in BTC liquidated on Base daily.

While cbBTC contributes significantly to the growth of Base’s daily active addresses, IntoTheBlock said that the hype surrounding BNS plays an even bigger role.

Coinbase launched the Basenames service on August 21st. The service allows users to establish their identity on the network by registering human-readable names for their addresses. Like the Ethereum Name Service (ENS), it ensures a unified name service and on-chain identity experience for everyone on Base.

Base names play an important role

Just three days after Coinbase introduced Basenames, the number of daily active addresses on Base reached a record 1.05 million. The number doubled to over two million just one month later.

Data from Ethereum’s Layer 2 analytics platform, GrowThePie, shows that Base currently accounts for 70% of active addresses among Ethereum-based Layer 2 networks, followed by Arbitrum, which accounts for 9, 6% Base overtook Arbitrum in late June and has remained ahead of the protocol ever since. Over the past week, Base has seen over 6.8 million active addresses, while Arbitrum recorded less than 943,000 addresses.

It is worth mentioning that cbBTC has faced a lot of criticism while contributing to the growth of Base. The crypto community has raised concerns about Coinbase’s lack of transparency in its Bitcoin reserves and token user agreement, suggesting that the exchange would not fully reimburse users for lost BTC due to ‘malicious activities or unforeseen events.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!