Coinbase is making strides at the intersection of AI and blockchain, rolling out new tools and setting records that could reshape the way users engage with digital assets. On Oct. 26, the company’s Ethereum layer 2 network, Base, briefly led the industry in stablecoin volume, surpassing major players like Solana and Ethereum on the same day it hit an all-time high in transaction count. In parallel, Coinbase introduced ”Based Agent,” a tool that allows users to create their own AI-driven crypto agents capable of performing tasks like trading, swapping, and staking in just minutes.
Coinbase’s Base Achieves Milestone as Leading Blockchain in Stablecoin Volume Amid Record Transaction Surge
The Ethereum layer 2 network Base, developed by Coinbase, made headlines on Oct. 26 by briefly capturing the number one position for stablecoin volume across blockchains. This achievement marks a significant moment for the relatively new network, which also celebrated an all-time high in transaction counts on the same day.
On Oct. 26, Base claimed a commanding 30.06% share of the day’s stablecoin volume, outpacing major blockchain networks including Solana, Ethereum, and Tron, according to data from Artemis Terminal. This momentary lead in stablecoin volume market share is evidence of Base’s recent momentum in transaction activity and its appeal within the DeFi ecosystem. Peter Schroder, a prominent analyst, brought attention to Base’s record in an Oct. 27 post on X.
Solana, which has historically maintained a dominant position in stablecoin transactions, followed closely with 25% of the day’s total volume, while Ethereum and Tron captured 20% and 16.7%, respectively.
Base’s sudden rise did not go unnoticed by prominent industry figures. Circle CEO Jeremy Allaire took to X to share his perspective, highlighting that if Base’s stablecoin volume trend continues, USD Coin (USDC) alone could reach an annualized transaction volume of $6.6 trillion on Base.
USDC, issued by Circle, represented a substantial portion of the stablecoin volume on Oct. 26, accounting for 62% of the daily volume. Tether (USDT), its main competitor, followed with 30%, while DAI, an algorithmic stablecoin, constituted 7.4% of the total. Base’s ability to attract high stablecoin volumes has positioned it as a strong contender for stablecoin transactions, competing with Ethereum, Solana, and Tron, which have traditionally been stablecoin hubs.
Base’s breakthrough in stablecoin volume coincided with a new daily record for transactions on the network. On Oct. 26, Base recorded 5.6 million daily transactions, a significant 20% increase over the previous month, as per data from Dune Analytics. The sustained surge in transaction count over the past month points to heightened adoption and suggests Base is fast becoming a go-to layer 2 solution for high-volume, low-cost transactions.
Since its launch, Base has consistently demonstrated its potential for handling large transaction volumes. It has become an attractive layer for developers and users due to its lower fees and the security of Ethereum’s underlying infrastructure. As an Ethereum layer 2 solution, Base benefits from the stability and established trust associated with Ethereum while providing a more scalable environment for transactions.
Base’s ascension challenges Solana’s historical dominance in stablecoin transactions. Until June this year, Solana typically accounted for about 60% of total stablecoin volume, leading across all major blockchain networks. Year-to-date, Solana has processed over $8.6 trillion in stablecoin volume, placing it at the forefront of the sector, while Ethereum holds the second position with $6.1 trillion.
While Solana remains the top network by stablecoin volume year-to-date, Base’s rapid increase in market share this month signals a shifting landscape. As of the most recent data, Base’s stablecoin volume market share hovers around 20.8%, just ahead of Solana’s 20.6%, though Ethereum remains the monthly leader with a 25.6% share. This emerging dynamic shows that Base is poised to become a substantial player, potentially reshaping the stablecoin transaction market.
The Growing Role of Layer-2 Networks in the Stablecoin Ecosystem
The rising prominence of Base speaks to a larger trend within the crypto sector: the critical role of layer 2 networks in enhancing transaction speed and affordability. Layer 2 solutions like Base provide users and developers with lower transaction fees, higher throughput, and improved scalability without compromising the security that underpins the Ethereum blockchain. This setup is crucial for stablecoin transactions, which require both high frequency and cost efficiency.
Meanwhile, the popularity of stablecoins, pegged to fiat currencies, has fueled demand for networks that support rapid and inexpensive transfers. As Base continues to capture market share in this sector, it could catalyze broader changes in how stablecoins are transacted, impacting fees, speed, and accessibility across the DeFi ecosystem.
While Base’s Oct. 26 milestone demonstrates its potential to challenge established blockchains in stablecoin volume, the network must maintain this momentum to secure a lasting position. Its rapid growth trajectory suggests that Base could soon be on par with Solana and Ethereum in terms of daily transaction volumes and overall stablecoin traffic. However, achieving sustained leadership will require continued user adoption, developer support, and perhaps even further integration with major DeFi applications.
For now, Base’s achievement marks a pivotal moment in its journey to becoming an influential player in the blockchain space. As Coinbase and its layer 2 network continue to expand, the competition among blockchain networks for stablecoin dominance is intensifying. The landscape ahead may see other networks adapting to Base’s momentum, prompting further innovation in transaction efficiency and cost-effectiveness, to the benefit of the wider cryptocurrency ecosystem.
Coinbase Introduces “Based Agent” Tool, Bringing AI-Driven Crypto Transactions to the Masses
In related news, Coinbase has unveiled a new tool, “Based Agent,” designed to allow cryptocurrency enthusiasts to set up personalized artificial intelligence (AI) agents equipped with crypto wallets in a matter of minutes. With this new feature, users can create AI-powered agents capable of handling a variety of on-chain tasks—from executing trades and swaps to staking assets.
With Based Agent, Coinbase aims to simplify the process of building AI agents—essentially programmable “bots” that execute a range of blockchain-related tasks autonomously. According to Lincoln Murr, a developer at Coinbase, the platform was designed to be accessible to even those with minimal technical expertise. In a video posted to X, Murr explained, “Our goal here is to make it as easy as possible to start building your own AI agent,” suggesting that even users unfamiliar with AI or blockchain development can easily engage with the tool.
Once set up, these AI agents can connect to smart contracts, perform token swaps, make trades, and manage staking activities. Additionally, each agent can register its own unique “base name,” allowing for a distinct identity within the decentralized ecosystem. According to Coinbase, this capability was developed using the company’s software development kit (SDK) in collaboration with OpenAI—the AI research organization behind ChatGPT—and software development platform Replit.
To start, users need an API key from Coinbase’s developer program, along with a key from OpenAI, which enables the agent to process AI tasks. They can then fork the template provided by Replit, making it easy for users to personalize their agents and extend functionality as desired. The setup process was designed to be completed in under three minutes, a feature highlighted by Coinbase CEO Brian Armstrong, who shared Murr’s post on X, emphasizing the user-friendly nature of Based Agent.
With the launch of Based Agent, Coinbase taps into a rapidly evolving market where AI and crypto intersect. By empowering users to create autonomous, self-directed AI agents, Coinbase effectively democratizes access to advanced on-chain operations, allowing users to handle tasks that would traditionally require significant technical knowledge or programming skills.
The introduction of Based Agent comes as Coinbase executives, including CEO Brian Armstrong, advocate for a broader adoption of AI agents within the crypto space. Armstrong’s engagement with AI bots has been publicized extensively; just days before Based Agent’s release, he offered the X-based AI chatbot, Truth Terminal, its own dedicated crypto wallet. Armstrong’s offer was intended to promote AI agency within the blockchain, allowing the chatbot to independently handle transactions, trade crypto, and interact with blockchain networks without human intervention.
Armstrong’s interest in autonomous AI transactions dates back several months. In August, he oversaw a blockchain transaction fully managed by AI agents, marking a milestone for Coinbase and the wider crypto community. The transaction involved crypto tokens that allowed AI bots to interact with each other, thereby demonstrating the potential for AI-managed financial interactions.
Beyond Coinbase, other companies and blockchain leaders are exploring the potential of AI within the crypto sphere. Jesse Pollak, Coinbase’s head of protocols and the creator of the Ethereum layer 2 network Base, highlighted an AI agent named “Luna,” which autonomously tipped users on X who engaged with her content.
Coinbase’s move to introduce AI-driven agents is part of a larger trend in the crypto and blockchain sectors, with industry experts predicting a future where autonomous agents will handle the majority of blockchain transactions. Mode Network founder James Ross recently suggested that over 80% of blockchain transactions could be conducted by AI agents within the next 6 to 12 months. Ross’s bold prediction, shared on X on Oct. 20, envisions a future in which human users delegate routine transactions, such as trades and staking, to automated agents, allowing individuals to focus on more complex strategies or innovations.
The forecasted shift toward AI-driven transactions could redefine the dynamics of blockchain activity, improving transaction speeds, reducing costs, and enhancing user experience through automation. As AI agents become more integrated into blockchain networks, they could also streamline operations for decentralized applications (dApps) and reduce the entry barriers for users looking to interact with DeFi platforms, NFTs, and other crypto applications.
AI-driven agents such as Based Agent may revolutionize decentralized finance (DeFi) by simplifying the user experience and making blockchain interactions more intuitive. Traditionally, DeFi has required users to have a solid understanding of wallet management, gas fees, and smart contracts. By leveraging AI, Coinbase aims to make these complex tasks more accessible to a broader audience, ultimately lowering the learning curve and expanding participation in the DeFi ecosystem.
The ability of AI agents to execute staking, trading, and other tasks autonomously could make DeFi more attractive to institutional investors as well. Financial institutions that have been cautious about direct DeFi involvement due to operational complexities may find these AI agents appealing, as they offer a controlled, automated method for on-chain activity.
In addition to simplifying transactions, AI agents like Based Agent can offer users enhanced security features. By allowing for predefined transaction limits, set permissions, and monitored activities, AI agents can mitigate risks associated with manual errors and human oversight. This blend of AI and blockchain technology introduces a unique safeguard mechanism that could appeal to both individual users and institutions alike.
Challenges and Implications of AI-Driven Transactions
While the potential of AI agents in blockchain is vast, it also raises critical questions about regulation, security, and ethical implications. Autonomous AI agents handling financial assets could lead to unprecedented challenges for regulators, who may struggle to define accountability and oversight standards. Moreover, the autonomous nature of these agents poses questions regarding their governance—who is ultimately responsible when an AI agent makes a critical error or when malicious actors attempt to exploit such systems?
The rise of AI agents also challenges the fundamental principles of decentralized networks. If AI agents eventually handle the majority of transactions, they could introduce new forms of centralization within the blockchain, as the companies or entities controlling the AI algorithms would wield significant influence. Coinbase’s partnership with OpenAI and Replit points to this possibility, as centralized platforms could hold sway over the behavior of these otherwise decentralized agents.
This article was originally Posted on Coinpaper.com
