Cryptocurrency exchange Coinbase has seen an increase in activity on its Ethereum Layer-2 network, Base. This growth is likely due to the upcoming launch of Coinbase’s new smart wallet. The total value locked (TVL) in Base’s DeFi applications reached an all-time high, coinciding with investor anticipation for the smart wallet’s release.
Significant Competitors Surpassed in 90 Days
Over the past 90 days, Base has significantly outpaced competitors Arbitrum and Optimism in growth. Base’s TVL increased by 465% to $7.41 billion, while Arbitrum grew by only 13% and Optimism saw a 12% decline.
The significant increase in activity and TVL on the Base network can be attributed to the implementation of EIP-4844 in March. This Ethereum Improvement Proposal introduced proto-danksharding, a technology that reduces gas costs for layer-2 solutions like Base.
Coinbase’s smart wallet is designed to facilitate the transition of users from centralized Blockchain exchange accounts to decentralized applications (dApps) built on the Blockchain. This browser-based onchain wallet uses a system called account abstraction to eliminate confusion for users.
User-Friendly Coinbase Wallet
Account abstraction allows users to delegate the authority to initiate transactions on the Ethereum Blockchain or a Layer-2 network to a third party. This enables a user-friendly onchain experience with features like gasless transactions, pre-approved payments, and one-click transactions.
Many investors and traders believe this retail-friendly smart wallet will play a crucial role in bringing Coinbase’s large user base into the decentralized finance (DeFi) world. Jesse Pollak, one of Base’s leading figures, even predicted on social media that by the end of the year, over 90% of active onchain users would be using the smart wallet, expecting tens of millions of new users to join through Coinbase’s wallet.
The smart wallet is currently available for testing, but no official launch date for the mainnet version has been confirmed. With its potential to attract new users and its timing coinciding with Base’s impressive growth, the release of Coinbase’s smart wallet is eagerly anticipated.
