Coinbase’s Base, a prominent layer-2 blockchain solution aimed at reducing Ethereum transaction fees, is currently grappling with increased network traffic and higher fees. This surge in activity, primarily driven by a newfound interest in “meme coins,” has resulted in some transactions getting stuck due to insufficient fees, with the platform issuing an official warning to its users.
Surge in Network Activity
Base has quickly risen to become the third-largest layer-2 network on Ethereum, boasting over $700 million in total value locked, as reported by DefiLlama. This week, the network experienced a significant uptick in transactions, attributed to the rising popularity of various meme coins, leading to an increase in daily transactions from under 200,000 to over 600,000.
User Guidance Amid Traffic Congestion
In response to the congestion, Coinbase has advised users experiencing pending transactions to cancel and resubmit them with a higher gas fee to ensure processing. However, for those unable to cancel their pending transactions, patience is advised until the network traffic decreases. Coinbase reassures users that their funds remain secure despite the delays.
The Meme Coin Phenomenon
The term “Base season” has gained traction among crypto influencers on social media platform X, with several notable traders promoting Base tokens, many of which are meme coins. Some of these tokens have seen dramatic price increases of up to 500% over the past week. Consequently, network fees, typically below $1, have spiked to as high as $5, stirring user complaints about the unexpected rise in costs.
Comparisons and Challenges
The situation with Base has drawn comparisons to Solana, another blockchain known for low transaction fees that experienced similar challenges with increased trading volumes, particularly from meme tokens. Jesse Pollak, who leads the protocols team at Coinbase and is credited with creating Base, acknowledged the growing pains on social media, indicating that heightened momentum would naturally bring more challenges and scrutiny to the platform.
As Base continues to navigate this surge in popularity and transaction volume, the platform’s response and adjustments will be closely watched by users and crypto enthusiasts alike, highlighting the dynamic and often unpredictable nature of the cryptocurrency ecosystem.
