Coinbase’s layer-2 blockchain, Base, designed to facilitate lower-fee transactions on the Ethereum network, is currently grappling with a surge in network activity. The increased demand has led to heightened traffic and rising transaction fees, causing disruptions for some users.
An official statement on the Coinbase status page revealed that the Base Mainnet is dealing with high traffic volumes, resulting in some transactions being stuck due to fees set too low. Additionally, it was noted that certain wallets, including the Coinbase Wallet, do not support the cancellation of transactions.
Base stands as the third-largest layer-2 network on Ethereum in terms of total deposits, holding over $700 million in total value locked, as reported by DefiLlama. This spike in activity coincides with a widespread interest in “meme coins,” digital tokens that have rapidly gained popularity for their internet appeal and potential for quick gains.
Data from Nansen indicated a significant rise in transaction counts, escalating from under 200,000 daily transactions in late February to over 600,000 on a recent Monday.
The meme coin craze and its effects
Coinbase has issued advice for users with pending transactions due to low fees, suggesting they cancel and resubmit with a higher estimated gas fee to expedite processing. For those unable to cancel their pending transactions, the company assured that these would eventually be completed once network traffic diminishes. Coinbase emphasized the security of users’ funds amidst the ongoing issues.
The recent craze around meme coins, such as Normie (NORMIE), Briun Armstrong (BRIUN), and Brett (BRETT), has contributed to the network’s challenges, with some experiencing price surges of up to 500% over the last week, according to DEXTools. Social media platforms have played a pivotal role in driving interest toward these tokens, leading to increased fees on the network, which are typically below $1, marking a significant shift from the network’s goal of offering lower transaction costs.