Ethereum L1 Expansion Won't Address Its Issues, Future Lies In... - Kyle Samani (Revised)
Title: Ethereum's Rival Base: A Growing Threat or Merely Music to Kyle Samani's Ears?
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Stakeholder Kyle Samani, a partner at crypto VC Multicoin Capital, has stirred the pot by criticizing Ethereum L1 as zero-sum in the wake of the Pectra upgrade. But is Samani's worthless utterance weighing on Ethereum's L1 potential? Or is it more of a dog whistle for Solana fans?
Samani spilled his venomous words on Base, a key competitor to Ethereum L1 in a recent X post. He contended that Ethereum's future rests on Coinbase, not its L1. Yet, he neglected to acknowledge Base's rapid growth, which has drawn millions of users and thousands of developers onto the chain.
But Base founder Jesse Pollak brushed off the hot air, stressing that Base is effectively Ethereum's best customer. Not only that, but Base is adding immense value to the Ethereum ecosystem, parting with tons of cash to ensure its existence.
Base: The Growing Tide
Despite this bitter back and forth, it's worth acknowledging that Base has been making waves. It's a high-speed L2 solution developed by Coinbase, utilizing Optimistic Rollups to ramp up Ethereum's scalability and slice through transaction costs. Base yearns to reach 2,000 transactions per second, a feat that would make it a prime contender for DeFi and NFTs.
But does it measure up to Ethereum? That's a resounding no, by the numbers. Despite Base's appeal, Ethereum still reigns supreme in terms of DApp revenue, raking in over a billion dollars in Q1 of this year alone.
However, Base is gaining traction, albeit slowly. It generates fee revenue amounting to less than 20% of what Ethereum accumulates. And although Base isn't threatening to dethrone Ethereum anytime soon, it does spell potential trouble in the future.
Ethereum: The King of the Hill
But let's not forget that Ethereum remains the undisputed behemoth in the DeFi and Web3 space. Despite a minor dip in its TVL dominance (from 63.5% to 56.6%) at the end of Q1, it still wields the crown. In fact, in terms of user engagement and DApp revenue, Ethereum remains unchallenged.
Is Base a growing threat to Ethereum's dominance? Well, it's too early to tell. Base's promise is enticing, but it has a long way to go to topple the king. So, while Kyle Samani and Solana supporters might see potential in Base, the current data strongly suggests that Ethereum stands tall as the unrivaled leader in the DeFi and Web3 space.
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Additional Data:
Base, a Layer-2 scaling solution backed by Coinbase, has generated significant interest due to its potential to enhance Ethereum's scalability and reduce transaction costs. However, it still lags behind Ethereum in terms of economic activity, as evident by the latter's dominance in DApp revenue and TVL. While Base poses a potential threat, Ethereum maintains its leadership position in the DeFi and Web3 space. For more information, visit a16z or check out Artemis's data on address activity, fees, revenue, and DEX volume.
- Despite Kyle Samani's criticisms, Base, a Layer-2 scaling solution developed by Coinbase and a competitor to Ethereum L1, has gained rapid growth, attracting millions of users and thousands of developers.
- In response to Samani's comments, Base's founder, Jesse Pollak, stated that Base is effectively Ethereum's best customer, adding immense value to the Ethereum ecosystem.
- While Base is making waves with its scalability solutions, Ethereum remains the undisputed leader in the DeFi and Web3 space, generating significantly more DApp revenue than Base and maintaining its dominance in user engagement.
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