Convicted executives from the collapsed cryptocurrency exchange FTX have received reduced sentences, marking a new development in one of the industry’s most high-profile legal cases.
While the sentences have been adjusted, the case continues to serve as a cautionary tale for the crypto sector, highlighting the consequences of financial mismanagement.
Base emerges as a key player in layer-2 adoption
Coinbase’s Layer-2 blockchain, Base, has solidified its position as a leader in adopting Layer-2 (L2) solutions throughout 2024. The tokenless chain maintained steady growth momentum all year, processing over 8 million transactions daily. This record-breaking activity places Base ahead of other L2 chains in transaction volume and tokenized transfer complexity.
Base led the way, and top L2s retained peak transaction counts toward the end of 2024. | Source: GrowThePie
Layer-2 chains saw reduced public attention in 2024, but their infrastructure became one of the most utilized features in Web3. Base alone hit a daily record of 8.8 million transactions, surpassing the combined total of 5.5 million from competitors like Arbitrum and Optimism. The broader L2 ecosystem is shifting toward app-driven adoption, moving away from earlier trends such as airdrop farming.
At the same time, Base’s success contrasts with Polygon’s struggles. Once a top choice for Web3 games and NFTs, Polygon saw reduced activity in 2024, with projects choosing alternative networks for launching apps and tokens. Meanwhile, according to L2Beat data, Layer-2 chains collectively locked in over $58 billion in value by the end of the year, further demonstrating their increasing importance.
Specialized app ecosystems drive growth
Each Layer-2 chain continues to attract specific types of apps and activities, allowing them to carve out unique niches within the crypto ecosystem. Arbitrum and Optimism have established themselves as hubs for decentralized finance (DeFi) and exchanges (DEXs). Meanwhile, Base leads centralized finance (CeFi) activity due to its utility transactions for Coinbase and its role in trading tokenized AI agents and wrapped Bitcoin (cbBTC).
Uniswap V3’s smart contract on Base recently achieved a record monthly volume, reflecting the chain’s growing prominence in liquidity-heavy trading. Similarly, Taiko has gained traction in DeFi by facilitating transactions with wrapped Ethereum (WETH9). Each chain’s busiest contracts are a testament to their focus on scaling Ethereum-based tasks.
Ethereum benefits from layer-2 expansion
Layer-2 chains are scaling Ethereum transactions and contributing significantly to ETH token burns. By December 27, blob fees from L2 chains became the third-largest source of ETH burns, helping Ethereum’s inflation rate stabilize at an annualized 0.5 percent. Despite initial concerns about L2 chains undercutting Ethereum, the ecosystem has reached a balance where L1 participants and L2 validators can generate fees.
Blob fees continue to be a top factor for daily ETH burns. | Source: Ultrasound Money
Ethereum remains dominant in stablecoin liquidity and hosts some of the most active smart contracts. Meanwhile, L2 chains are expanding their reach by hosting innovative apps and driving the next phase of decentralized adoption.
The post Base Maintains Strong L2 Transaction Growth Through Late 2024 first appeared on Coinfea.
