Base stablecoin transaction volume briefly tops all other chains
On October 26, Coinbase’s Ethereum-based layer-2 blockchain, Base network, achieved a remarkable milestone by briefly dominating stablecoin transaction volumes across all blockchain networks. In a competitive landscape where Solana, Ethereum, and Tron have long held the leading positions, Base network secured the top spot for the day, accounting for 30.06% of total stablecoin volume. 
This significant achievement underlines the transformative potential of layer-2 solutions like Base network in shaping blockchain dynamics and enhancing stablecoin usage.
Record-Breaking Stablecoin Volume on Base Network
According to data from Artemis Terminal, Base network recorded a staggering daily stablecoin volume share, outperforming prominent blockchains. Solana followed closely with a 25% market share, while Ethereum came in third at 20%, and Tron held 16.7%. The impressive performance of Base network in stablecoin volume has catalyzed discussions about its potential to permanently shift the balance of blockchain transaction leadership.
Jeremy Allaire, CEO of Circle, highlighted the implications of this trend. He projected that, should this pace continue, USD Coin (USDC) could achieve an annual run rate of $6.6 trillion on Base network alone. USDC accounted for 62% of all stablecoin volume on the network, followed by Tether (USDT) at 30%, and DAI at 7.4%. The upsurge of Base network's volume reflects an overall increase in network activity, with a record 5.6 million daily transactions reported on October 26—a 20% month-on-month increase, based on data from Dune Analytics.
Stablecoin Competition: Base Network versus Solana, Ethereum, and Tron
Historically, Solana dominated the stablecoin transaction market, often representing approximately 60% of stable volume. Ethereum has been a close contender, consistently driving substantial transaction activity. Base network's recent surge, however, disrupts this dominance. Since mid-June, Base has shown progressive growth, positioning itself as a competitive force.
While Base network achieved top position for stablecoin volume on October 26, Solana continues to lead in year-to-date stablecoin volume, with $8.6 trillion. Ethereum follows closely, contributing $6.1 trillion. Notably, Base network’s rise coincides with Solana’s volume adjustments, showcasing the adaptability and demand for layer-2 blockchain solutions.
As of the latest available data, Base network holds a market share of 20.8% in stablecoin volume this month, with Solana at 20.6%. Ethereum, however, leads the month’s cumulative data, maintaining a 25.6% share. Base network's capacity to draw stablecoin transactions indicates a robust potential to continue gaining market share among blockchain giants.
The Technical Edge: Why Base Network is Gaining Ground
Several factors have fueled Base network's remarkable growth. As a layer-2 solution built on Ethereum, Base network capitalizes on Ethereum’s established security framework, creating a favorable environment for scaling. This layer-2 design offers enhanced speed, lower transaction costs, and improved efficiency—all critical attributes for facilitating stablecoin transactions.
The adoption of Base network is also driven by Coinbase’s backing, which brings user confidence and facilitates integrations that drive practical use cases. This structure enables Base network to support a diverse range of applications that attract substantial stablecoin volume, from DeFi protocols to NFT platforms and payment solutions.
In addition to leveraging Ethereum’s established infrastructure, Base network provides enhanced developer flexibility and tools for deploying smart contracts, encouraging innovative projects. By reducing transaction congestion on Ethereum’s mainnet, Base network also improves accessibility for developers and users seeking scalable and affordable blockchain solutions.
The Future of Stablecoin Markets on Base Network
The rapid growth of Base network has significant implications for the broader stablecoin and blockchain market landscape. As institutional and retail interest in stablecoins continues to grow, Base network is well-positioned to serve as a reliable platform for high transaction volumes. The consistent rise in daily transactions and growing market share indicate that Base network could become a permanent player among leading blockchains.
Circle CEO Jeremy Allaire’s forecast on USDC usage hints at the economic implications of Base network's continued dominance. If Base network sustains this level of activity, stablecoins like USDC could experience even broader adoption on decentralized platforms, further cementing stablecoins as a foundational element of digital finance.
The stablecoin market, characterized by its volatility and high transaction frequency, benefits from the efficiency provided by layer-2 solutions. As Base network continues to mature and attract stablecoin projects, it may offer increased liquidity, lower transaction fees, and a stable infrastructure for blockchain assets.
Conclusion
As Base network sets new records and reshapes stablecoin volume dynamics, it is positioned to become a dominant force in blockchain transactions. Its swift rise exemplifies the potential of layer-2 networks to redefine blockchain ecosystems, presenting a future where Base network could challenge longstanding blockchain giants. By capitalizing on Ethereum’s foundation and providing an efficient, scalable platform, Base network may continue its upward trajectory, signaling a transformative period for stablecoin markets and blockchain technology at large.
