The Base Effect: Understanding How Stablecoins Perform on Coinbase’s Layer-2 Protocol

In the rapidly evolving world of cryptocurrencies, stablecoins have emerged as a beacon of stability. Stablecoins are digital currencies designed to minimize price volatility by being pegged to a reserve of assets, typically a fiat currency like the US dollar. This stability makes them an attractive option for investors looking for the benefits of cryptocurrency without the risk of price fluctuations. 

One platform that has been instrumental in this development is the Base, a Layer-2 protocol featured on Coinbase. This article delves into the performance of various stablecoins on the Base, providing insights into their stability, transaction speed, and overall performance.

Key points in this article:

  • Stablecoins are digital currencies that are designed to minimize the volatility of the price of the stablecoin, relative to some “stable” asset or a basket of assets.
  • Coinbase’s Layer-2 protocol is a second-layer solution built on top of an existing blockchain, intending to increase transaction speed and efficiency.
  • The performance of stablecoins on Coinbase’s Layer-2 protocol has been promising, with increased transaction speed and reduced gas fees.

The Base: A Layer-2 Solution

The Base, developed by Coinbase, is a Layer-2 solution that enhances the performance of transactions, including those involving stablecoins. It interacts with the Ethereum blockchain without altering the base-level protocol, making transactions faster and more cost-effective.

As a secondary protocol built on top of a blockchain (Layer-1), The Base increases scalability and efficiency. It handles transactions off-chain, reducing transaction fees and speeding up processing times. This makes it a suitable platform for stablecoins. However, the stability of a stablecoin is still dependent on its underlying collateral or mechanism of stability.

Layer-2 solutions like The Base enhance stablecoin transactions in the following ways:

  • Increased Speed: Transactions are processed off-chain, increasing throughput.
  • Reduced Costs: Off-chain processing reduces gas fees associated with on-chain transactions.
  • Maintained Security: Despite being off-chain, the security of the underlying blockchain is maintained.
  • Interoperability: Compatible with any Ethereum token, including most stablecoins.

In the following sections, we will delve deeper into the intricacies of stablecoins operating on the Base, shedding light on their performance, stability, and overall impact on the crypto market.

Analysing Stablecoin Performance on the Base

In this section, we delve into a comprehensive analysis of the data at hand, highlighting key findings and trends. The aim is to provide valuable insights that can inform decision-making. A detailed exploration of these points will follow. Let’s dive into the analysis!

In the performance analysis of stablecoins on the Base, a Layer-2 protocol by Coinbase, we observe some key metrics:

  • Stablecoin Swap Count: The number of swaps involving stablecoins is 2.5 million, indicating a high level of activity.
  • Stablecoin Swap Volume: The total volume of these swaps is $1.8 billion, reflecting the significant economic value transacted through stablecoins.
  • Total Number of Traders: There are 352,670 traders involved in stablecoin transactions, showing a diverse range of participants.
  • Total Transfers Volume: The total volume of all transfers is $11.25 billion.
  • Total Transfers Count: The total number of transfers is 3.8 million, highlighting the active use of stablecoins.
  • Number of Unique Receivers and Senders: The number of unique receivers is 536.6k and senders are 386.4k, showing that stablecoins are being widely used.
  • Total Number of Unique Holders: There are 250,735 unique holders of stablecoins, indicating broad distribution and adoption.

Swap Analysis

Based on the analysis of the swap volume of different stablecoins, Here are the detailed findings:

Swap Overview:

  • Stablecoin Swap Volume ($USD): 1.8 billion
  • Stablecoin Swap Count: 2.5 million
  • Total Number of Traders: 352,670
  • Median Swap Volume ($USD): 24
  • Average Swap Volume ($USD): 542
  • Maximum Swap Volume ($USD): 455.2k

Findings from Swap Analysis:

  • So far, 103.4K unique traders have traded a volume equivalent to 632.4M USD of stablecoins during 479.1K swaps.
  • The largest amount of stablecoin swaps in a single transaction on the Base chain is 455.2K USD.
  • Unlike other chains in the Base chain, stablecoins have not yet registered a swap with a volume of more than 1M USD.
  • The average swap volume of stablecoins in the Base chain is 1.2K USD, while half of the swaps have a volume of less than 72 USD.

Findings from Volume Analysis:

  • In the middle of August, the volume of swap stablecoins in the Base chain increased dramatically.
  • On August 15, the volume of swap stablecoins crossed the 100M USD limit for the first time.
  • USDbc and axlUSDC have the largest volume of swaps in the Base chain.
  • About 78.5% of the total swap volume on the Base chain (496M USD) is related to USDbc and 17.8% of the total swap volume (112.75M USD) is related to axlUSDC.
  • The largest volume of DAI swap was observed on August 11, with DAI swap volume reaching 2.6M USD.
  • The total DAI swap volume has been equal to 22.45M USD so far.
  • Among various stablecoins, the lowest daily swap volume is related to MIM. The total swap volume of this stablecoin since its inception is 329K USD.

Findings from Trader Activity Analysis:

  • The number of stablecoin traders in the Base chain is increasing daily.
  • Most of the activity of these traders has been observed on August 21.
  • USDbc is the most popular stablecoin for traders on the Base chain.
  • Most traders are active in Uniswap v3.


  • The number of receiver addresses for all stablecoins is greater than the number of sender addresses.
  • USDbc has the highest number and volume of transfers, while MIM has the lowest.
  • For DAI, the average volume of transfers between different wallets is higher compared to other stablecoins, with an average transfer volume of approximately 2.5K DAI per transaction.
  • 50% of DAI transfers have a volume exceeding 112 DAI.
  • The largest volume of stablecoins transferred in a single transaction is related to USDbc, with around 2.5 million USDbc transferred between two addresses during one transaction.
  • DAI has a higher average volume of transfers per sender and receiver compared to other stablecoins.
  • axlUSDC has the highest average number of transfers per sender and receiver among all stablecoins.


  • In mid-August, there was a significant increase in the volume of transfers of stablecoins on the Base chain, with the volume of stablecoin transfers exceeding 187 million USD on August 16.
  • On most days, the average transfer volume of DAI was higher than that of other stablecoins.
  • The chart depicting the number of transfers of stablecoins shows a notable upward trend, indicating heightened engagement, usage, and activity related to those stablecoins within the blockchain ecosystem.
  • Despite the growing number of addresses, the average number of transfers from these addresses has remained relatively constant without significant changes.


In the context of stablecoins on the Base, a Layer-2 protocol by Coinbase, holders play a significant role in the performance and stability of these digital assets. Here’s a detailed analysis:

Total Number of Unique Holders: 

There are currently 250,735 unique addresses on the Base chain holding stablecoins in their wallets.

Number of Holders by Stablecoin:

  • USDbc: 77.4K holders
  • axlUSDC: 7.59K holders
  • DAI: 4.34K holders
  • MIM: 4.32K holders

Average Balance

The average balance of DAI in different wallets on the Base chain is more than the balance of other stablecoins, with an average balance of around 3.75K DAI per holder. axlUSDC ranks second in this regard.

Top Holders

The top holders of various stablecoins on the Base chain are as follows:

  • 0x4c80e24119cfb836cdf0a6b53dc23f04f7e652ca: 10.6M USDbc
  • 0xaca85874d52e3e6d991f9e0b273a96228edfee7b: 2.5M axlUSDC
  • 0x6d3c5a4a7ac4b1428368310e4ec3bb1350d01455: 2.5M DAI
  • 0xa2b120cab75aefdfafda6a14713349a3096eed79: 756K MIM

Holders with More Than 1M Units

The number of holders who hold more than 1M units of each stablecoin are:

  • USDbc: 10 addresses
  • axlUSDC: 3 addresses
  • DAI: 6 addresses
  • MIM: On the Base chain, no address holds more than 1M MIM.

Largest Share of Coins

For all stablecoins except MIM, the largest share of coins is owned by wallets with a balance of more than 1M USD.


The integration of stablecoins into Coinbase’s Layer-2 protocol has shown significant potential in addressing some of the inherent challenges in the crypto space, such as slow transaction speeds and high gas fees. This not only enhances the user experience but also opens up new possibilities for the adoption and utility of stablecoins. However, it’s important to note that like all technologies, it’s still evolving and has its own set of challenges to overcome. As we move forward, it will be interesting to see how this space evolves and what new innovations will emerge.

Categorized in: