Exploring the Surge in Layer 2 Networks’ Activity ⚡️
Layer 2 networks have seen a surge in activity, despite native token downturns and market volatility. These solutions have maintained steady activity throughout the year.
Investors’ Preference for Base 🚀
- Net ETH deposits in Base exceeded 6,500 ETH this week.
- Arbitrum only saw half of this figure.
- Optimism lagged even further with just a fifth of the deposits Base received.
- Investors are flocking to Base over other Layer 2 scaling solutions.
This trend indicates that investors still view Base as the primary choice for deploying capital, possibly due to its established infrastructure and perceived reliability.
“Despite leveling activity among Layer 2s, Base continues to attract the most new capital. Since Monday, net ETH deposits to Base have surpassed 6,500 $ETH, more than double that of Arbitrum and five times as much as Optimism.”
Base, Coinbase’s Ethereum layer-2 solution, aims to enhance on-chain user base expansion. Launched in August 2023, the solution promises faster and more cost-effective transactions.
Coinbase’s Q1 report highlighted Base’s trading volume surpassing competitors post Ethereum’s Dencun upgrade. DeFi crypto exchanges on Base saw daily trading volumes over $1 billion, closing the gap with Coinbase’s main centralized exchange, which offers trading for nearly 250 cryptocurrencies.
Following the Dencun upgrade, Base observed a surge in daily transaction volume and revenue. The upgrade reduced costs for Layer-2 scaling chains like Base, driving increased user engagement and transaction volume.
Surge in Scammer Activity on Base 🛡️
As Base gains popularity, it becomes a target for scammers.
- Scam Sniffer reported two of the top 10 largest single thefts occurred on the Base chain.
- These thefts comprised 21% of the total theft in the month.
- Scammer activity on the network surged by nearly 1,900% since January, resulting in about $170,000 stolen through phishing scams.
In April, nearly 90% of the stolen assets on Base were ERC-20 tokens.
Hot Take on Layer 2 Networks 😎
Despite market volatility, Layer 2 networks like Base continue to attract investors, showcasing their reliability and infrastructure advantages. However, heightened scammer activity poses a significant risk for unwary users. As you navigate the crypto space, diversify your investments, conduct thorough research, and remain vigilant against potential scams to safeguard your assets and investments.
*Sources:
[IntoTheBlock Twitter](https://twitter.com/intotheblock/status/1788142377510514792)
[Scam Sniffer Twitter](https://twitter.com/realScamSniffer/status/1787417290176430476)*
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