- Base announces upgrade for higher transactions, decentralization, cheaper fees.
- Transaction time to shorten to 200 ms.
- ETH volume surged 18% post-announcement.
Base, backed by Coinbase, plans a substantial Ethereum Layer 2 network upgrade for speed, cost efficiency, and advanced decentralization.
The upgrade includes faster confirmations, lower fees, and aims to enhance Ethereum and related markets’ performance.
Base’s Upgrade Boosts Transaction Speed and Decentralization
Base, supported by Coinbase, is undergoing an upgrade to boost speed, lower costs, and enhance decentralization. Jesse Pollak, chief developer, detailed plans to accelerate transaction confirmations to 200 milliseconds and achieve fees under $0.01. The upgrade aims for more than 200 transactions per second immediately with a goal of 1 million TPS.
To further decentralize, Base intends to shift protocol elements to Ethereum Layer 1 using smart contracts, thus enabling validation by independent developers. Key to this upgrade is the Flashblocks system, achieving near-instant pre-confirmation, expected to go live by summer 2025 on the main network.
“Fast, cheap, scaled, neutral, and decentralized, empowering builders and creators to shape the future,” said Jesse Pollak, Chief Developer, Base. The news triggered a strong market response, notably an 18% surge in Ethereum trading volume on exchanges like Binance and Coinbase. ETH’s price rose 3.5%, while Coinbase stock also increased by 2.5%, indicating strong confidence in Base’s growth potential.
Ethereum and Market Analysts Respond to Base’s Plans
Did you know? Ethereum’s Layer 2 expansions, like those seen with Base, historically propel market optimism, reflected in increased trading activity and price movements following such announcements.
Ethereum (ETH) current trades at $2,560.88, with a market cap of $309.16 billion. It saw a 2.74% price increase over the past 24 hours and 6.46% over the last 7 days, according to CoinMarketCap. ETH remains a dominant force with 8.99% market share, despite its infinite supply cap.
The Coincu research team suggests this upgrade positions Base as a formidable competitor among Ethereum Layer 2 networks. Analysts highlight potential efficiency gains and market competitiveness, given low transaction fees and high transaction speeds, which may drive broader Ethereum network engagement.
Source: https://coincu.com/339716-ethereum-layer2-base-upgrade/