tl;dr
Anatoly Yakovenko, co-founder of Solana, has questioned the vitality of the Ethereum ecosystem without the contributions from Base, a Layer 2 solution, citing its rapid growth in user activities and transaction volumes. Base's integration with Coinbase's user base and the popularity of meme coins li...
Base Layer 2 Solution Experiences Rapid Growth in User Activities and Transaction Volumes
Anatoly Yakovenko, co-founder of Solana, questions the vitality of the Ethereum ecosystem without the contributions from Base, a Layer 2 solution, citing its rapid growth in user activities and transaction volumes. Base's integration with Coinbase's user base and the popularity of meme coins like MOG and BRETT have contributed to its surge.
On the other hand, on-chain economist Lily Liu has raised concerns about the accuracy of Base's reported active addresses compared to Solana's, suggesting a more precise data visualization method. Despite this, Base's rise has positioned it as a leading contender among Ethereum's Layer 2 solutions, while Ether has faced challenges post its Dencun upgrade.
Rapid Growth in Base Layer 2 Solutions
Base has seen an exceptional increase in key activity metrics such as Active Addresses, Transaction Count, and Throughput, all achieving new peaks recently. This growth trajectory is also mirrored in its Stablecoin Market Cap and Total Value Locked (TVL), which are reported at all-time highs.
Base Layer 2 integration with Coinbase’s existing large user base is seen as a significant factor driving its demand and subsequent rise in these metrics. Additionally, the surge in Base’s activity is attributed partly to the popularity of meme coins within its ecosystem, notably MOG and BRETT.
Impact on Ethereum's Market Position
Contrastingly, Ether has faced challenges since its Dencun upgrade, marked by an inflationary supply and declining revenues. In contrast, Base Layer 2 rise has been conspicuous, capturing a notable share of transactions and revenues. This has positioned it as a leading contender among Ethereum’s Layer 2 solutions.
Moreover, most recently, Anatoly Yakovenko shed light on the differences between Solana and ETH. Despite its technological advantages, Solana has not gained the same institutional attention as Ether. He pointed out that the contrasting scaling methods of the two platforms might impact institutional interest. Solana emphasizes hardware scaling, while Ethereum focuses on software solutions.