Base, the Ethereum layer-2 protocol developed by crypto exchange Coinbase, has experienced a surge in activity, leading to a significant increase in its daily active addresses.
According to data from IntoTheBlock, the rise in Base’s daily active addresses is attributed to the launch of Coinbase Wrapped Bitcoin (cbBTC) and the introduction of the Base Name Service (BNS).
Surge in Base Active Addresses
Coinbase introduced cbBTC on Base and Ethereum in September, following the integration of the Lightning Network for BTC transfers. The wrapped token, backed by BTC and held by Coinbase, provides users with access to various DeFi applications and features.
In just under two weeks, cbBTC has attracted over 3,500 users, settling an average of $472 million in BTC daily on Base.
While cbBTC has contributed to the growth of Base’s active addresses, the excitement surrounding BNS has played a larger role.
The Basenames service, launched by Coinbase in August, allows users to register human-readable names for their addresses, enhancing on-chain identity and user experience on Base.
Impact of Basenames
Within three days of introducing Basenames, Base saw a record 1.05 million daily active addresses, which has since doubled and exceeded two million within a month.
GrowThePie data reveals that Base holds 70% of active addresses among Ethereum layer-2 networks, surpassing Arbitrum. Base has maintained its lead over Arbitrum, with over 6.8 million active addresses compared to Arbitrum’s less than 943,000 addresses.
Despite its growth, cbBTC has faced criticism for Coinbase’s lack of transparency regarding Bitcoin reserves and the token’s user agreement, raising concerns about user protection in case of loss due to malicious activity.
