TL;DR
- Base, the Ethereum layer-two network developed by Coinbase, has reached a record high for stablecoin transaction volume, surpassing Solana, Ethereum, and Tron.
- On a single day, October 26, Base accounted for 30.06% of all stablecoin volume, while USDC had a 62% share of this figure.
- Base’s daily transaction volume reached 5.6 million, indicating a 20% increase compared to the previous month.
On October 26, Ethereum’s layer-two network, Base, reached a notable milestone by temporarily becoming the leading blockchain in stablecoin transaction volume.
According to data from Artemis Terminal, Base managed an impressive 30.06% of total stablecoin volume on the day, surpassing big-name competitors like Solana, Ethereum, and Tron.
This significant increase in network activity comes at a time when Base is experiencing steady growth, reflected in its record 5.6 million daily transactions, a 20% increase compared to the previous month.
Stablecoin volume on Base was dominated by USD Coin (USDC), which accounted for a staggering 62% of total transactions, followed by Tether (USDT) at 30% and algorithmic stablecoin DAI at 7.4%.
Jeremy Allaire, CEO of Circle commented on this phenomenon, suggesting that if the trend continues, USDC could reach an “annualized rate” of $6.6 trillion on the Base network alone.
This underlines the importance of Base in the stablecoin ecosystem and its potential for further growth in the future.
A shift in the stablecoin landscape with Base
Historically, Solana has been the dominant network in the stablecoin transaction space, accounting for roughly 60% of total volume on major blockchain networks as of mid-June.
However, the situation has changed dramatically.
Even though Solana continues to lead stablecoin volume so far this year at over $8.6 billion, the emergence of Base suggests that market dynamics are constantly evolving.
By comparison, Ethereum sits at $6.1 trillion in total volume.
Against the backdrop of this shift, the protocol has proven to be a formidable contender, briefly surpassing Solana in volume on October 26.
As October progresses, Base has maintained a 20.8 % market share, compared to Solana’s 20.6%, indicating that Coinbase’s network is gaining traction.
Undoubtedly, the growth in stablecoin transaction volume not only reflects the growing acceptance of the Base network , but also a shift in user preferences towards more efficient and faster solutions.
With the continued evolution of the cryptocurrency ecosystem and the rise in the use of stablecoins, we are likely to see more competition between major networks in the near future.
Base’s ability to attract and retain users will be key to its success in the competitive blockchain landscape.
With constant innovations and a focus on scalability, Base is likely to establish itself as a leader in the sector, offering effective and secure alternatives for stablecoin transactions.
