Coinbase’s Base Network Hits Record Stablecoin Volumes, Surpassing Solana

Coinbase’s Ethereum layer-2 network, Base briefly overtook Solana, Ethereum, and Tron as the blockchain for stablecoin transactions.

On October 26, Coinbase’s Ethereum layer-2 network, Base, achieved a remarkable feat by briefly overtaking Solana, Ethereum, and Tron as the leading blockchain for stablecoin transactions. 

According to data from Artemis Terminal, Base captured a record 30.06% of the total stablecoin transaction volume on that day. This milestone was accompanied by an all-time high in daily transactions, reflecting a significant uptick in network activity.

In the rankings for stablecoin volume, Solana followed closely behind Base with 25%, while Ethereum and Tron accounted for 20% and 16.7%, respectively. Circle CEO Jeremy Allaire commented on this development, suggesting that if this momentum continues, USD Coin (USDC) could see an annual run rate of $6.6 trillion on Base alone.

USDC played a crucial role in Base’s performance, comprising 62% of the total stablecoin volume on October 26. Of those, 30% were Tether USDT and 7.4% were the algorithmic stablecoin DAI. That volume jump coincided with Base reportedly processing 5.6 million daily transactions during the month, up 20% from the previous month, per Dune Analytics.

Solana Has Dominated

Up until mid-June, Solana consistently held a 60% market share, dominating the stablecoin transaction area historically. With Ethereum at $6.1 trillion, Solana has maintained a year-to-date volume of above $8.6 trillion. Although Solana, Ethereum, and Tron have the highest total volume for the year, Base is gaining ground after recently surpassing Solana in volume. As of the latest data, Base holds a stablecoin market share of 20.8% for the month, just ahead of Solana at 20.6%, with Ethereum leading at 25.6%.

Source: X

On October 26, base accounted for 30% of the total stablecoin volume. 

Base is a Coinbase-powered open-source, decentralized layer 2 on Ethereum, in efforts toward the scaling of dApps, or decentralized applications, and their increased usability. The Chain will work in manners so that they will build a very developer- and user-friendly environment to create and execute smart contracts and DeFi applications.

Base’s New Competition: An Overview of Recent Developments

In the rapidly evolving landscape of layer-2 (L2) solutions, Base faces new competition as significant advancements emerge from various players in the space. Notably, Kraken has announced the development of “Ink,” a new rollup built on the OP Stack. This initiative aims to replicate the familiar DeFi experience that mirrors Kraken’s centralized services, encompassing features like staking, spot trading, and self-custody options.

The testnet for Ink is scheduled for release later this year, with a full mainnet launch anticipated in the first quarter of 2025. Interestingly, Kraken has decided not to introduce an Ink token at this stage, citing regulatory concerns.

Meanwhile, Base is progressing toward decentralization with the rollout of fault-proof technology. This crucial upgrade will enable users to challenge network activities, significantly enhancing the platform’s security and transparency. This development is pivotal for Base as it seeks to solidify its position as a leading L2 solution, particularly after recently achieving the status of the largest layer-2 network.

In addition to Base and Kraken’s advancements, the week saw noteworthy events in the cryptocurrency market. Terminal of Truth’s GOAT token reached an all-time high market cap of $900 million, largely fueled by its listing on Binance futures. The token’s rise has sparked discussions regarding the interaction of popular phrases within Crypto Twitter, which some believe may lead to potential market manipulation.

Stripe just paid $1.1 billion for the stablecoin platform Bridge, a sure-fire barometer of the sizable bets the company has lately placed on the digital cryptocurrency market. The integration of Bridges’ infrastructure will help Stripe increase its global payment capability, given that the platform is already processing billions of dollars in cross-border payments while propping up greater adoption of stablecoins.

Conversely, MicroStrategy’s Michael Saylor ignited debate after proposing that Bitcoin custodianship should be managed by large banks. This suggestion drew criticism from various sectors of the crypto community, prompting Saylor to clarify his support for both institutional and self-custody solutions.

Finally, the airdrop scene remains dynamic as ZK L2 Scroll launched its SCR airdrop to over 570,000 wallets, which resulted in disappointment among smaller users. The launch was marred by complaints about its distribution favoring larger wallets, leading to a decline in initial trading prices. Despite this setback, Pump.fun announced plans for its own airdrop, benefiting from substantial trading volumes and a robust annual revenue that could support a future distribution.