Base L2 Network Sees Rapid Growth with Over 2M Daily Active Addresses

The number of active addresses on Base, a Layer 2 blockchain developed by Coinbase, has soared to over 2 million daily, outpacing other Layer 2 (L2) networks. The rapid growth highlights the platform’s rising popularity within the crypto ecosystem.

The number of active @base addresses has exploded to over 2 million daily, dwarfing other L2s.

While airdrops and $cbBTC play a role, most hype seems to be originating from Basenames, the platform’s equivalent of ENS names pic.twitter.com/J0hod0p2BK

— IntoTheBlock (@intotheblock) September 23, 2024

Blockchain analytics platform IntoTheBlock highlighted that several factors are driving the spike in active addresses on Base, with notable contributors being airdrops, the increasing use of Coinbase’s cbBTC, a wrapped version of Bitcoin on the Base network, and the growing adoption of Basenames, which enable users to create unique blockchain identities.

cbBTC Boosts Activity on Base Network

According to a CoinTab report, the newly launched wrapped Bitcoin token, cbBTC, achieved a market cap of $100 million just one day after its debut on the Ethereum and Base networks. 

With a circulating supply of 3,135 tokens, approximately 43% of cbBTC is held on Base, while 57% is on Ethereum. This uptake on Base highlights the platform’s increasing traction.

The introduction of cbBTC, part of Coinbase’s efforts to enhance Bitcoin’s usability in decentralized finance (DeFi), has contributed to the growth of the Base network. As users adopt cbBTC for various DeFi applications, Base has seen a notable uptick in activity, further driving the platform’s development.

Meanwhile, airdrops are also driving growth on Base by attracting new users and increasing active addresses.

Growing Interest in Basenames

IntoTheBlock also noted that much of the recent development on Base stems from the growing interest in “Basenames,” Base’s equivalent of Ethereum Name Service (ENS) names. These personalized, blockchain-registered domain names are quickly gaining traction among users, further propelling the network’s daily activity.

Basenames enables users to create and own unique identities on the Base blockchain, functioning similarly to ENS names on Ethereum. Like ENS, Basenames allows users to generate easily readable names for blockchain addresses, replacing lengthy, complex wallet addresses with simpler names. The initiative aims to streamline crypto transactions by making wallet identification more user-friendly.

The adoption of Basenames has coincided with increased interest, as users seek to secure personalized blockchain identities, contributing to the rise in active addresses.

Although other L2 networks such as Arbitrum and Optimism have also seen steady growth, Base’s rapid expansion has been notable for its ability to capture market share in a short time. The ongoing interest in Basenames, alongside developments like airdrops, may help maintain this growth trajectory and enhance Base’s standing among layer 2 solutions.