Coinbase is experiencing increased traction on Base, its Ethereum layer 2 network, largely due to its forthcoming smart wallet, which is gaining investor interest. Its TVL is also experiencing an unusual escalation.
Over the past three months, Base has succeeded in surpassing Arbitrum and Optimism in terms of TVL. Base’s TVL has experienced a significant increase of 465%, resulting in a total of $7.41 billion. Arbitrum and Optimism witnessed a minor increase of 13% and a decline of 12%, respectively.
This remarkable rise can be ascribed to the deployment of EIP-4844 in March, which introduced proto-danksharding technology and lowered the amount of gas that was required for layer-2 solutions.
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Coinbase’s smart wallet will be responsible for initiating uninterrupted transformation, turning decentralized exchange accounts into decentralized applications (dApps) on the Blockchain. The browser-oriented on-chain wallet utilizes account extraction to ease user interactions by doing away with all doubt factors.
Account extraction gives users the option of allocating transaction facilitation authority to an intermediary on either an Ethereum Blockchain or a Layer 2 network. The technology helps improve overall user exposure by allowing for gasless transactions, pre-consent payments, and single-click transactions.
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There has been no announcement regarding the formal introduction of the smart wallet to the mainnet model, as it is currently in the testing phase. Nevertheless, the substantial anticipation for its official release has been fueled by its potential to attract new users and its timing in conjunction with Base’s remarkable growth.
