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Coinbase Hits 2M Daily Transactions After Dencun Upgrade

The Coinbase layer-2 network sees a transaction surge after the Dencun upgrade with reduced fees. Solana overtakes Ethereum in trading volume amidst challenges.

Claudia Fischer

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Coinbase Stock (COIN) Surges 9% as Bitcoin (BTC) Breaks the Mark

Coinbase’s Ethereum layer-2 network, Base, witnessed a remarkable surge in daily transactions and user registrations following the recent Dencun upgrade. The upgrade, which rolled out Ethereum Improvement Proposal 4844, brought about significant reductions in transaction fees across various layer-2 networks, including Base.

Before the upgrade, Base was processing approximately 440,000 transactions per day. However, just one day after the upgrade, this figure skyrocketed to 1.1 million and continued to climb, reaching a record 2,064,920 transactions on March 16th.

The business on Base can be gained due to the marked cut in transaction fees after the upgrade is finished. Without transaction tax, with costs dropping to as much as 60%, it is easy for customers to choose Base.

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Along with a lot of corresponding deals, the number of new users also skyrocketed, with over 666,866 registrations on March 16, which strained the network almost 10 times the same as before for the upgrade for the Dencun update.

Dencun Upgrade Enhances Layer-2 Scalability

The Dencun upgrade, combining Ethereum Improvement Proposals Deneb and Cancun, represents an advancement in Ethereum’s scalability efforts. By introducing proto-dank sharding through EIP-4844, the upgrade aims to reduce transaction fees for layer-2 networks while enhancing overall scalability.

Related: Ethereum’s Dencun Upgrade Testnet Activations and Impact

 Proto-dank sharding facilitated off-chain storage of transaction data, resulting in cost-efficient transaction processing and reduced gas costs for layer-2 solutions like Base, Arbitrum, Optimism, and zkSync Era.

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In addition, new enhancements like EIP-4788 and EIP-6780 are also a way of raising the security layer of the Ethereum network, making it more stable against attacks and making it easier to communicate between the layers of the network.

Solana Surpasses Ethereum in Trading Volume Amid Challenges

The Solana network demonstrated the highest trading among all exchanges, surpassing Ethereum in terms of total trading volume. On March 16th, Ethereum’s trading volume was $2.4 billion, and it was easily surpassed by Solana’s trading volume, which was $3.52 billion.

This surge was largely driven by growing interest in Solana-based memecoins, particularly Book of Meme (BOME) and $NAP (NAP). However, the network faced challenges handling the increased traffic, with users reporting frequent failed or missing transactions.

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