Coinbase’s Ethereum Layer 2 network, Base, briefly overtook Solana, Ethereum, and Tron as the blockchain for stablecoin transactions.
On October 26th, Coinbase’s Ethereum Layer 2 network, Base, achieved the remarkable feat of temporarily overtaking Solana, Ethereum, and Tron as the leading blockchain for stablecoin transactions.
According to data from Artemis Terminal, Base recorded 30.06% of the total stablecoin trading volume on the day. This milestone included a record high in daily transactions, reflecting a significant increase in network activity.
In the stablecoin circulation ranking, Solana closely followed Base with 25%, followed by Ethereum and Tron with 20% and 16.7%, respectively. Commenting on this development, Circle CEO Jeremy Allaire suggested that if this momentum continues, the annual run rate of USD Coin (USDC) could reach $6.6 trillion in Base alone.
USDC played a key role in Base’s performance, accounting for 62% of the total stablecoin volume on October 26th. 30% of that was Tether USDT and 7.4% was algorithmic stablecoin DAI. This spike in transaction volume coincided with Base reportedly processing 5.6 million daily transactions during the month, up 20% month over month, according to Dune Analytics.
Solana ruled
Until mid-June, Solana held a consistent 60% market share and historically dominated the stablecoin trading space. Ethereum is worth $6.1 trillion, and Solana has maintained a trading volume of over $8.6 trillion since the beginning of the year. Solana, Ethereum, and Tron had the highest total trading volume this year, but Base has recently surpassed Solana in trading volume and is on the rise. As of the latest data, Base held a stablecoin market share of 20.8% for the month, slightly ahead of Solana’s 20.6%, with Ethereum leading at 25.6%.
Source:X
On October 26th, base accounted for 30% of the total stablecoin volume.
Base is an open source decentralized layer 2 on top of Ethereum powered by Coinbase, working to scale and improve the ease of use of dApps (decentralized applications). Chain works to create a very developer- and user-friendly environment for creating and running smart contracts and DeFi applications.
Base’s New Competition: Overview of Recent Developments
In the rapidly evolving landscape of Layer 2 (L2) solutions, where significant advances are being made by various players in the space, Base faces new competition. In particular, Kraken announced the development of “Ink,” a new rollup built on top of the OP stack. The initiative aims to recreate the familiar DeFi experience that mirrors Kraken’s centralized offering, including features such as staking, spot trading, and self-custody options.
Ink’s testnet is expected to be released later this year, with a full mainnet launch scheduled for the first quarter of 2025. Interestingly, Kraken has decided not to introduce the Ink token at this stage due to regulatory concerns.
Meanwhile, Base is decentralizing by introducing fault-proof technology. This important upgrade enables users to challenge network activity and significantly increases the security and transparency of the platform. This development is critical for Base as it looks to solidify its position as the leading L2 solution, especially after recently achieving the status of the largest Layer 2 network.
In addition to Base and Kraken’s progress, this week has seen some notable events in the cryptocurrency market. Terminal of Truth’s GOAT token reached an all-time high market cap of $900 million, largely driven by its listing on Binance futures. Some believe that the token’s rise could spark a debate over the interaction of popular phrases within crypto Twitter, leading to potential market manipulation.
Stripe just paid $1.1 billion for stablecoin platform Bridge, a solid barometer of the big bet the company is making on the digital cryptocurrency market these days. The integration of Bridges’ infrastructure will help increase global payments capacity, given that Stripe’s platform already processes billions of dollars in cross-border payments while facilitating the adoption of stablecoins. Helpful.
Conversely, MicroStrategy’s Michael Saylor sparked controversy when he suggested that Bitcoin storage should be controlled by large banks. The proposal drew criticism from various sectors of the crypto community, prompting Saylor to clarify his support for both institutional and self-managed solutions.
Finally, the airdrop scene remains dynamic as ZK L2 Scroll launched SCR airdrops to over 570,000 wallets, resulting in disappointment among small users. The launch was marred by complaints about distribution favoring larger wallets, leading to a drop in initial trading prices. Despite these setbacks, Pump.fun announced its own airdrop plans and benefited from substantial trading volumes and solid annual revenue to support future deliveries.
