Exploring the Surge in Chain Activity on Ethereum L2 Networks and the Role of Meme Coins

Exploring the Surge in Chain Activity on Ethereum L2 Networks and the Role of Meme Coins

2024-04-07 23:04:21

  • Increased meme coin activity on Base contributed to the increase.
  • An increase in active addresses might improve the number in the coming weeks.

Layer 2 projects built on top of it Etereum [ETH] block chain like Polygon [MATIC] have been experiencing an increase in chain activity.

According to IntoTheBlock, minutes on the networks have reached 32 million every week since the Dencun update.

However, the 32 million transactions weren’t just for Polygon: it includes Base, arbitration [OP]

y Optimism [OP].

Ethereum finished the Dencun upgrade on March 13. For the uninitiated, the upgrade helped reduce costs on Layer 2 networks. Activity was therefore expected to increase.

No more controls

Having this number for the last three weeks was tremendous. However, it was proof that the development goals were working, as new entrants did not have to worry regarding exorbitant gas fees.

When AMBCrypto analyzed the data, we saw that Polygon was leading in several metrics. But Base stood his ground. For example, transactions on Polygon were 4 million on April 5.

Base, for its part, was 3 million while Arbitrum was 1.5 million and 801,400 respectively. However, another thing we noticed was that despite Polygon’s numbers, Base surpassed it in fees generated.

From our findings, Brett [BRETT], a meme coin built on Base, was one of the reasons it dominated the network. another was toshi [TOSHI].

While TOSHI was built as the face of Brian Armstrong’s cat, BRETT was known as pepe [PEPE]

best friend in the Base chain.

In the last 30 days, BRETT price has increased by 79.18%. At the time of this publication, its market capitalization was $592 million.

TOSHI’s price increased by 46.51% in the same period, while its market capitalization was just over $179 million.

These figures imply that prices and market capitalization might rise. If this were the case, the total L2 transactions on Ethereum might be higher in the future.

The tides have changed

However, the dynamic was different when it came to active addresses. According to data from Santiment, the addresses active 24 hours a day on Polygon were 2,133.

On Arbitrum, it rose to 15,500. Optimism, on the other hand, had 10,000. Active addresses measure the daily level of interaction within a network.

But one thing in common regarding the metric was that they all declined.

When comparing activity to transaction count, it can be seen that fewer market participants participated in higher transactions since the end of Polygon.

Realistically, here it is The market capitalization of MATIC in terms of ETH

In the short term, network activity on Ethereum L2 might decline as user interaction decreases.

However, in the event that the market recovers from its “watching” mode, changes might occur. In this case, the active user count might improve and weekly transactions might exceed 32 million.

Next: Why ApeCoin, BAYC, and MAYC Lagged Bitcoin NFTs in Q4 2023

This is an automatic translation of our English version.


1712532615
#driving #Ethereums #million #transactions

Leave a Replay