Coinbase’s layer-2 blockchain solution, Base, which is specifically designed to facilitate lower-fee transactions on the Ethereum network, is currently facing challenges due to a surge in network activity. This increased demand has led to heightened traffic and rising transaction fees, causing disruptions for some users.
An official statement posted on the Coinbase status page acknowledged the situation, revealing that the Base Mainnet is experiencing high traffic volumes, resulting in some transactions getting stuck due to fees set too low. Additionally, it was highlighted that certain wallets, including the Coinbase Wallet, do not support the cancellation of transactions, exacerbating the issue for affected users.
Despite these challenges, Base remains a significant player in the layer-2 network space on Ethereum, currently ranking as the third-largest layer-2 network based on total deposits. DefiLlama reports that Base holds over $700 million in total value locked, indicating its substantial presence within the Ethereum ecosystem.
The recent surge in activity on Base coincides with a broader trend of increased interest in “meme coins,” digital tokens characterized by their internet appeal and potential for rapid gains. Data from Nansen shows a notable uptick in transaction counts, with daily transactions surging from under 200,000 in late February to over 600,000 on a recent Monday, reflecting the heightened activity and interest in decentralized finance (DeFi) and digital assets.
The meme coin craze and its effects
In response to the challenges posed by heightened network activity and rising transaction fees, Coinbase has issued guidance for users with pending transactions due to low fees. The company recommends canceling and resubmitting these transactions with a higher estimated gas fee to expedite processing. For users unable to cancel pending transactions, Coinbase assures them that these transactions will eventually be completed once network traffic subsides. Throughout these issues, Coinbase emphasizes the security of users’ funds, reaffirming its commitment to safeguarding their assets.
The surge in activity on the network has been attributed in part to the recent craze surrounding meme coins, including tokens like Normie (NORMIE), Briun Armstrong (BRIUN), and Brett (BRETT). According to DEXTools, some of these meme coins have experienced price surges of up to 500% over the past week. Social media platforms have played a significant role in driving interest in these tokens, contributing to increased fees on the network.
These developments represent a departure from the network’s initial goal of offering lower transaction costs, as fees have risen to levels typically below $1. The influx of activity driven by meme coins highlights the dynamic and evolving nature of the cryptocurrency space, where social media influence and market sentiment can have significant impacts on network dynamics and user experience.
