Key Points
- Layer-2 projects on the Ethereum blockchain, such as Polygon, are seeing a surge in on-chain activity.
- Despite Polygon’s high transaction numbers, Base outperformed it in terms of fees generated.
The Ethereum blockchain’s Layer-2 projects like Polygon are witnessing a significant increase in on-chain activity.
According to IntoTheBlock, these networks are recording 32 million transactions weekly following the Dencun upgrade.
Impact of Dencun upgrade
The Dencun upgrade, finalized on March 13th, has reduced costs on Layer-2 networks, leading to increased activity.
This high transaction volume is a positive sign, indicating that the upgrade’s objectives are being met and reducing concerns about high gas fees for new users.
Polygon leads in several metrics, but Base closely follows it. For example, Polygon had 4 million transactions on April 5th, while Base recorded 3 million transactions.
Role of Meme Coins
Interestingly, despite Polygon’s high transaction count, Base generated more fees. This dominance is partly due to Brett and Toshi, meme coins built on Base.
Brett’s price has surged by 79.18% in the past 30 days, with a current market cap of $592 million. Similarly, Toshi’s price has risen by 46.51%, and its market cap stands at just over $179 million.
These figures suggest that the prices and market cap could further increase, potentially resulting in higher total L2 transactions on Ethereum.
However, the number of active addresses, which measure the daily level of interaction within a network, has decreased. This trend indicates that fewer market participants are involved in higher transactions from Polygon’s end.
In the short term, Ethereum L2s’ network activity might decrease as user interaction falls. But if the market recovers from its current passive state, the active user count could improve, potentially leading to weekly transactions exceeding 32 million.
