tl;dr
Layer 2 networks have seen increased activity despite a decline in their native tokens' value. Base has attracted the most new capital, with over 6,500 ETH deposited, surpassing its competitors Arbitrum and Optimism. Coinbase's Q1 report indicated that Base's trading volume exceeded that of its riva...
Layer 2 networks have experienced a surge in activity, with Base attracting the most new capital. Coinbase's Base network has surpassed its competitors in trading volume and user engagement following Ethereum's Dencun upgrade. However, the Base chain has also witnessed a significant increase in scammer activity, with 21% of total theft in a month occurring on the network.
Despite a decline in the native tokens' value, Layer 2 networks have seen increased activity. Base has attracted the most new capital, with over 6,500 ETH deposited, surpassing its competitors Arbitrum and Optimism. Coinbase's Q1 report indicated that Base's trading volume exceeded that of its rivals after Ethereum's Dencun upgrade. However, with its growing popularity, Base has become a target for scammers, with a significant rise in scammer activity resulting in approximately $170,000 stolen through phishing scams since January.
Over the course of this week, net ETH deposits into the Base have exceeded 6,500 ETH, marking a significant increase. Arbitrum saw just half of this figure, while Optimism lagged even further behind with only a fifth of the deposits Base received. Such a trend suggests that despite the growing interest in Layer 2 scaling solutions, investors still see Base as the preferred choice for deploying their capital.
Base, the Ethereum layer-2 solution designed by Coinbase to expand its user base on-chain, was launched in August 2023 to ensure faster transactions at a lower cost. Coinbase’s Q1 report indicated that trading volume on the Layer 2 network exceeded that of its competitors, especially following Ethereum’s Dencun upgrade. In fact, DeFi crypto exchanges on Base witnessed daily trading volumes surpassing $1 billion, closing the gap between Base and Coinbase’s main centralized exchange, which trades nearly 250 cryptocurrencies.
Owing to its growing popularity, the Base chain appears to be a target for scammers. Two of the top 10 largest single thefts occurred on this chain, making up 21% of the month’s total theft. Since January, scammer activity on the network has increased by almost 1,900%, resulting in approximately $170,000 stolen through phishing scams. In April, nearly 90% of the stolen assets were ERC-20 tokens.
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