Coinbase-backed Base leads in Ethereum layer-2 fees amid trading activity surge Coinbase-backed Base leads in Ethereum layer-2 fees amid trading activity surge
Base said the high fees was caused by high network traffic.
2 min read
Updated: Mar. 21, 2024 at 7:27 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Coinbase-backed Base has the highest transaction fees among Ethereum layer-2 networks due to the current wave of attention it enjoys among crypto traders.
Gasfees data shows that Base is the priciest layer-2 protocol among scaling solutions that have implemented the Dencun Upgrade’s Blobs feature. The feature significantly reduces transaction fees and enhances throughput for layer-2 networks by allowing for a more efficient and cost-effective way to post rollup data.
Indeed, the average transaction fee on Base hovers between $0.0857 and could reach as high as $0.5582 for an average NFT trade on Seaport compared to the average transaction fee on Optimism, which ranged between $0.0009 and $0.0550.
Meanwhile, the blockchain network confirmed this high fee situation, noting that it was caused by “high network traffic.” However, it claimed the problem had been corrected as of press time.
Why Base transaction fees spiked
Crypto analyst Kofi attributed the situation to heightened bot trading activities willing to pay the “high priority fees.”
Another on-chain data analyst, Michael Silberling, provided a more comprehensive insight into the elevated fee phenomenon. He highlighted automated actors focusing on memecoins and arbitrage opportunities on the Base network as key contributors to the fee surge.
Silberling noted that these traders typically exhibit lower sensitivity to fees than average users, thereby sustaining the elevated network fees on Base due to increased demand.
Notably, a dune analytics dashboard curated by analyst Hildobby showed that the number of atomic arbitrage bots on Base had seen an uptick recently.
Base DEX volume surge
The increased bot trading activity has pushed the daily trading volume of decentralized exchanges (DEXs) on the Ethereum Layer 2 network to a new high of $374 million the past day.
This milestone reflects Base’s growing popularity among crypto traders following the successful completion of the Dencun upgrade. According to data from DeFiLlama, transactions on the platform have soared by 71% over the past week, reaching around $1.5 billion.
In addition, the total value of assets locked on the network has spiked to a new high of $775 million.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Optimism
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Optimism is a layer-2 scaling network for the Ethereum blockchain.
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Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
