Ethereum’s Layer-2 Networks Surge with 32 Million Weekly Transactions
Ethereum’s Layer-2 (L2) networks have recently witnessed a remarkable surge in activity, with weekly transactions hitting the 32 million mark. This significant increase in on-chain activity is attributed to several factors, including the rise in meme coin activity on Base, a blockchain launched by Coinbase Global Inc., and the successful implementation of the Dencun upgrade.
Increased Meme Coin Activity on Base
One of the primary drivers behind the surge in Ethereum’s L2 transactions is the heightened activity of meme coins on Base. The memecoin frenzy has taken over this blockchain, which is designed to be the centerpiece of Coinbase’s expansion into decentralized finance (DeFi) and non-fungible tokens (NFTs). The popularity of meme coins has contributed to the overall hike in transactions, as these tokens have become a significant attraction for retail investors and traders.
The Dencun Upgrade’s Impact
The Dencun upgrade, finalized on March 13, has played a crucial role in boosting the number of transactions on Ethereum’s L2 networks. This upgrade introduced several Ethereum Improvement Proposals (EIPs), including EIP-4844, which aimed to optimize gas fees for L2 network data and enhance the network’s capacity to handle a greater volume of transactions. The upgrade has led to a reduction in transaction costs by as much as 94%, making it more cost-effective for users to engage with L2 networks.
Surge in Active Addresses
Another contributing factor to the surge in L2 transactions is the increase in active addresses. Active addresses measure the daily level of interaction within a network, and there has been a noticeable uptick in the number of users interacting with Ethereum’s L2 networks. This increase in active addresses indicates a growing interest and participation in the Ethereum ecosystem, which could further improve the number of transactions in the coming weeks.
Layer-2 Projects Like Polygon
Layer-2 projects built on the Ethereum blockchain, such as Polygon (MATIC), have also experienced a surge in on-chain activity. Polygon, in particular, has seen a significant increase in transactions, contributing to the overall 32 million weekly transactions on Ethereum’s L2 networks. The Dencun upgrade has been beneficial for Polygon and other L2 projects by lowering costs and attracting new users.
Future Prospects
The current trend of increasing transactions on Ethereum’s L2 networks is expected to continue, especially if the market recovers from its cautious stance. With the objectives of the Dencun upgrade proving effective and new entrants no longer deterred by high gas fees, the total L2 transactions on Ethereum are likely to climb even higher. The ongoing development and optimization of L2 networks are set to further enhance the scalability and efficiency of the Ethereum blockchain, making it more competitive and accessible for a broader range of users and applications.
Ethereum’s L2 networks are experiencing a significant surge in transactions, driven by the memecoin activity on Base, the successful Dencun upgrade, and an increase in active addresses. This trend reflects the growing adoption and utility of Ethereum’s L2 solutions, which are essential for the blockchain’s scalability and mass adoption. As the ecosystem continues to evolve and improve, Ethereum’s L2 networks are poised for even greater activity and innovation.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
