Coinbase’s Layer-2 Blockchain Base Faces Challenges Amidst Surge in Network Activity and the Memed Token Craze
Coinbase’s much-anticipated layer-2 blockchain, Base, designed to bring lower transaction fees to the Ethereum network, is currently grappling with a surge in network activity. This heightened demand has led to increased traffic and rising transaction fees, resulting in disruptions for some users.
An official statement on Coinbase’s status page revealed that the Base Mainnet is dealing with high traffic volumes, leading to some transactions being stuck due to fees set too low. Furthermore, it was noted that certain wallets, including the Coinbase Wallet, do not currently support the cancellation of transactions.
Background: Base and its Significance
Base is the third-largest layer-2 network on Ethereum, holding over $700 million in total value locked, as reported by DefiLlama. The spike in activity coincides with a widespread interest in “meme coins,” digital tokens that have gained massive popularity for their internet appeal and potential for quick gains.
The Current Situation: Traffic, Fees, and Pending Transactions
Coinbase has advised users with pending transactions due to low fees to cancel and resubmit with a higher estimated gas fee to expedite processing. For those unable to cancel their pending transactions, the company has assured that these will eventually be completed once network traffic diminishes. Coinbase emphasizes the security of users’ funds amidst these ongoing issues.
The Impact: Meme Coins and Network Congestion
The recent craze around meme coins, such as Normie (NORMIE), Briun Armstrong (BRIUN), and Brett (BRETT), has contributed to the network’s challenges. Some meme coins have experienced price surges of up to 500% over the last week, according to DEXTools. Social media platforms have played a crucial role in driving interest toward these tokens, leading to increased fees on the network, typically below $1 – a significant shift from the network’s goal of offering lower transaction costs.
Looking Ahead: Adapting to the Increased Demand
As the meme coin craze continues, Coinbase and other Ethereum-based platforms must adapt to the increased demand while maintaining network efficiency. This may include further updates and improvements to existing layer-2 solutions or the development of new ones.
In summary, the surge in network activity caused by the meme coin craze has placed significant pressure on Coinbase’s Base layer-2 blockchain. The ongoing situation highlights the importance of users being aware of current network conditions and adjusting their actions accordingly to ensure optimal transaction processing and security.
