The post Ethereum Layer-2 Networks Are Raking in Millions—With Base Leading the Way appeared on BitcoinEthereumNews.com.

We do the research, you get the alpha! Get exclusive reports and access to key insights on airdrops, NFTs, and more! Subscribe now to Alpha Reports and up your game! Go to Alpha Reports Base, the Ethereum layer-2 scaling network launched by top U.S. crypto exchange Coinbase, generated more than $6 million in on-chain profits in May, making it the most profitable layer-2 network while topping the likes of Blast and Optimism in the process. Base’s surging profits have been fueled by a rapid increase in total value locked (TVL), according to L2BEAT, in turn driven by Ethereum’s implementation of EIP-4844 and proto-danksharding via the anticipated Dencun upgrade in March. According to blockchain analytics platform GrowThePie, Base generated the most on-chain profit of any layer-2 chain with $6.1 million in May, followed by $1.5 million for Blast and $1.4 million for Optimism. While Base is far ahead of these rivals in the profitability wars, its monthly tally has declined sharply after spiking with Dencun upgrade in March. On the other hand, Blast, the rising layer-2 network from the makers of NFT marketplace Blur, has recently gained recognition for its unique native yield for ETH and stablecoins, as well as projects like Pacmoon and Fantasy Top that are doling out ample incentives to users. Blast’s share of all layer-2 profits increased from 5.3% in April to 15.2% in May. It’s still well behind Base, however, which enjoyed 56.8% of all layer-2 profits last month. On-chain profitability for layer-2 networks refers to the balance between costs to interact with the layer-1 network (Ethereum) and revenues generated via fees, token issuance, and other means. It does not include any off-chain expenses, and thus should not be considered a complete picture of how these networks are run from top to bottom. A Dune dashboard…

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Filed under: News - @ June 5, 2024 6:26 pm