In an exciting turn of events in the crypto universe, the decentralized exchange aggregator 1inch has joined forces with Coinbase’s Ethereum Layer 2 network Base. The network, having paved the way for the launch of major exchanges like Uniswap, Balancer, and SushiSwap, also brings 1inch into the epoch of triumphant progression. The aspiration behind this partnership is to leverage liquidity from the 15 decentralized exchanges currently functioning on the Network.
The 1inch limit order protocol, an interesting twist to this tale, enables investors to strategically place buy and sell orders at pre-set values. This approach differs significantly from the commonplace instant price conversions offered by decentralized exchanges, providing an air of stability in a volatile market. From a forward-thinking standpoint, the Base blockchain draws from the “Coinbase product integrations and easy fiat onramps”, rendering its integration into robust Layer 2 networks like Optimism, Arbitrum, and zkSync Era, showing compatibility with Ethereum, BNB Chain, Avalanche, among other blockchains.
In a market where new players and growth dynamics are the name of the game, the Base Network has exhibited considerable progress. Since its launch, it has woed a massive influx of more than 100,000 daily active users. This impressive surge has been fuelled in part by the advent of Friend.tech, a cutting-edge social network allowing tokenized Twitter accounts to access private chats based on account’s “key” holders.
The Ethereum Layer 2 network, powered by Base, has outperformed Alpha competitors like Arbitrum and Optimism in daily transactions. Figures highlighting an average of 813,000 daily transactions for Base trumping Arbitrum’s 646,000 and Optimism’s 469,000, pose the potential scale of magnitude the network can achieve. However, it’s pertinent to note that a substantial chunk of Base’s trading activity is currently dominated by meme coin transactions, a fickle factor that could sway at any moment.
Despite the fascinating developments and the prominent surge in trading volumes, the path of the Base network is not without its challenges. The most significant talking point has been the trading of meme tokens related to the Friend.tech platform, amounting to $48.8 million of Base’s $79.7 million trading volumes. This insurance of trading elements should raise adequate skepticism to ensure the ecosystem’s evolution is not solely riding on a fleeting tide.
With Compound joining the network and Circle announcing its integration with Base, future prospects for Ethereum Layer 2 appear compelling. Nevertheless, it would be intriguing to watch how the dynamics between the popularity of meme coins versus stable coins and key project developments will shape the journey of the Base network. Will it keep surging on its current trajectory, or will it face unexpected roadblocks? Only time will tell.
Source: Cryptonews
