Coinbase, a prominent cryptocurrency exchange, has recently experienced a surge in activity on its Ethereum Layer-2 network, Base. This uptick is largely attributed to the impending launch of Coinbase’s innovative smart wallet. Investors are eagerly anticipating this release, as evidenced by the total value locked (TVL) in Base’s DeFi applications reaching unprecedented levels.
Significant Competitors Surpassed in 90 Days
In the past three months, Base has outperformed notable competitors Arbitrum and Optimism. Base’s TVL surged by an impressive 465% to $7.41 billion, whereas Arbitrum saw a modest 13% growth, and Optimism encountered a 12% decline. This notable ascent is attributed to the implementation of EIP-4844 in March, introducing proto-danksharding technology that reduced gas costs for layer-2 solutions.
Coinbase’s smart wallet aims to facilitate a smooth transition for users from centralized exchange accounts to decentralized applications (dApps) on the blockchain. The browser-based onchain wallet leverages account abstraction to simplify user interactions, removing potential confusion.
What is Account Abstraction?
Account abstraction allows users to delegate transaction initiation authority on the Ethereum blockchain or a Layer-2 network to a third party. This technology enhances the user experience by enabling features like gasless transactions, pre-approved payments, and one-click transactions.
Key Takeaways for Users
• Base’s TVL growth significantly outpaced Arbitrum and Optimism.
• EIP-4844 implementation reduced gas costs, boosting Base’s activity.
• Coinbase’s smart wallet simplifies user transition to dApps with account abstraction.
• The smart wallet is expected to attract tens of millions of new users.
Conclusion
While the smart wallet is currently in the testing phase, no official launch date for the mainnet version has been confirmed. However, its potential to draw new users and its timing with Base’s impressive growth have created substantial anticipation for its official release.