The total value locked (TVL) of Coinbase's base layer (Base) reached a record $2 billion as demand surged after the Dencun upgrade was activated.

The recent Dencun upgrade reignited activity at Base, pushing its TVL past $2 billion.

Coinbase’s Base is a second-layer blockchain solution launched to reduce Ethereum transaction fees. Recently, demand has increased significantly due to the increase in network activity. As a result, its TVL has also climbed sharply, reaching a new record of over $2 billion this week.

One of the main reasons for the surge in Base activity is the activation of the Dencun upgrade.

Base’s TVL Growth

According to L2Beat data, Base’s current TVL is US$2.27 billion, an increase of more than 230% year-on-year. In the past seven days alone, this number has increased by nearly 50%.

The implementation of the Dencun upgrade has significantly reduced the second-layer transaction fees, making the Ethereum second-layer network a more economical choice. This has also become one of the important reasons for the growth of Ethereum transactions. Although average transaction fees briefly rose above $1, trading activity remained strong.

The upgrade launched by Dencun on March 13, which aims to slash transaction fees built on the Ethereum second-layer network, is considered a major driver of developers’ efforts to achieve broad scalability through these solutions.

Prior to this major upgrade, Base processed approximately 440,000 transactions per day, according to Dune Analytics. However, after the upgrade, the number surged to 1.1 million the next day and continued to climb in the following days, surpassing 2.06 million by March 16.

At the same time, the Base platform saw a surge in new user traffic that day, reaching more than 666,000, an impressive 3,200% increase from the average in the weeks before Dencun was released.

Traffic uprising

Last week, the Base mainnet experienced high traffic and rising fees, with some users witnessing transaction delays due to insufficient fees. This situation is also exacerbated by the lack of transaction cancellation functionality on some wallets, such as the Coinbase wallet.

This surge in activity coincides with the resurgence of memecoin craze across the ecosystem. It’s worth noting that Solana has been the go-to venue for developers launching meme coins over Ethereum due to its low fee structure, simpler transactions, and cheap token presales.

However, Dencun could be a game-changer in this regard, potentially positioning Base at the center of the next wave of memecoin craze.

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