Base Dominates Ethereum Layer 2 Race with Record Fee Revenue Amid Market Volatility

As the Ethereum ecosystem thrives, Base has solidified its position as the leading Layer 2 network, outperforming competitors in fee revenue and user activity despite turbulent market conditions. A recent Dune Analytics report highlights its $570 million weekend surge, underscoring its pivotal role in scaling Ethereum.

Base Maintains Strong Lead Among Ethereum Layer 2s

Base emerged as the top Ethereum layer 2 network during the Q4 2024 rally, especially in terms of volumes, and continues to hold the top position even after bumpy market conditions. The Ethereum ecosystem has maintained healthy activity, with most of it taking place in layer 2s. A recent Dune analytics report revealed that Base generated the highest fee revenue among layer 2 networks, surging to $570 million during the weekend. It also led in DEX activity with a 60% dominance.

Ethereum Privacy Debate Continues: Developers Push for Encrypted Mempool

The debate on Ethereum’s privacy has been reignited following the U.S. government’s sanctions on Tornado Cash in 2022. Tornado enabled anonymous crypto transfers but was accused of facilitating money laundering. Some Ethereum validators and block builders avoided engaging with Tornado-linked transactions, making the service slower and costlier. Advocates argued that complying with sanctions amounted to censorship, and President Trump later lifted the sanctions. However, the situation highlighted a flaw within the Ethereum network, prompting developers to push for an encrypted mempool and default privacy features.

Privacy On Ethereum: Vitalik Buterin’s Radical Roadmap

Ethereum, known for its transparency, faces criticism over privacy concerns. Every transaction is public, making it less private. Vitalik Buterin, co-founder of Ethereum, proposes a four-tier vision to protect user privacy, addressing issues in on-chain payments and interactions in dApps. This move aims to safeguard the average user in the Web3 era.

BlackRock’s BUIDL Fund Surpasses $2.1 Billion AUM on Ethereum

BlackRock’s BUIDL fund has seen rapid growth in recent weeks, surpassing $2.1 billion in assets under management (AUM) on Ethereum (ETH). This represents 90.5% of all BUIDL tokens across the seven chains it supports. The investor appetite for blockchain-based securities is growing, despite a market downturn. The fund has risen from around $500 million in AUM to its current level, highlighting the growing recognition of blockchain’s role in traditional finance (tradFi).