Coinbase’s Base Emerges as Fee Generation Leader in Layer-2 Ecosystem

In a significant development within the cryptocurrency infrastructure landscape, Base—the Layer-2 (L2) scaling solution incubated by Coinbase—has solidified its position as the dominant network in daily fee generation, surpassing all other L2 competitors. As of recent data, Base generates approximately $147,000 in daily revenues, a figure that underscores its robust economic activity and growing adoption. This performance is particularly noteworthy given the competitive environment of Ethereum Virtual Machine (EVM)-compatible L2 networks, where only two other chains, Arbitrum and Starknet, are reported to generate meaningful fee revenue in comparison. The surge in Base's fee generation is primarily driven by three core activities: decentralized exchange (DEX) trading, standard token transactions, and perpetual futures trading. This diversified activity base indicates healthy and sustained usage beyond mere speculation, pointing to Base's evolution into a comprehensive financial hub within the Layer-2 space. Its integration with the broader Coinbase ecosystem provides a seamless on-ramp for retail and institutional users, likely contributing significantly to its transaction volume and, consequently, its fee revenue. This milestone is more than a metric; it represents a validation of Coinbase's strategic bet on scalable blockchain infrastructure. By building an L2 solution directly atop Ethereum, Coinbase has positioned Base to capture value from the increasing demand for cheaper and faster transactions while maintaining the security of the Ethereum mainnet. The $147K daily revenue figure translates to substantial annualized earnings, highlighting a potentially sustainable economic model for Layer-2 networks that goes beyond token incentives or subsidies. Looking ahead, Base's current dominance in fee generation sets a new benchmark for success in the L2 arena. It demonstrates that alignment with a major, compliant exchange like Coinbase can drive real economic activity and network effects. For investors and observers in the digital asset space, Base's performance is a bullish signal for the viability of application-specific L2s and the continued maturation of the Ethereum scaling ecosystem. Its ability to maintain this lead against formidable competitors like Arbitrum will be a key narrative to watch through 2026 and beyond.

Base Emerges as Dominant Layer-2 Network in Daily Fee Generation

Base has solidified its position as the leading Layer-2 (L2) network in daily fee generation, outpacing competitors with $147K in daily revenues. The chain's robust activity—driven by decentralized exchange (DEX) trading, token transactions, and perpetual futures—reflects its growing dominance in the ethereum Virtual Machine (EVM)-compatible L2 ecosystem.

Only two other L2 chains, Arbitrum and Starknet, generate meaningful daily fees, with Arbitrum producing $39K and Starknet lagging further behind. Meanwhile, Ethereum remains the fee leader, drawing $500K daily from smart contract activity—a reminder that L2 adoption has yet to fulfill early promises of widespread app ecosystem growth.

Layer-2 networks now account for just 15.9% of app-based revenues, with Base alone contributing 70% of that share. The disparity highlights the challenges smaller L2s face in attracting sustainable activity beyond speculative trading.

Crypto Regulation Rift Widens As Republicans Reject Market Structure Bill

Senate Banking Committee negotiations hit a roadblock as Coinbase CEO Brian Armstrong withdrew support for a proposed crypto market structure bill. The legislation, aimed at establishing federal oversight of digital assets, stablecoins, and DeFi markets, now faces heightened partisan tensions.

Republican lawmakers led by Sen. Tim Scott voiced skepticism about the bill's intent, questioning whether it serves retail investors or merely benefits select corporations. Disagreements center on regulatory scope, with Republicans advocating for precise enforcement mechanisms rather than broad language that could stifle innovation.

Bitcoin demonstrated resilience amid the political standoff, climbing 1.5% as market participants appeared unfazed by the regulatory uncertainty. The cryptocurrency's steady performance suggests traders may be discounting immediate legislative impacts.

Crypto Market Plummets Following Senate's Withdrawal of Key Legislation

Crypto-related stocks suffered heavy losses after the U.S. Senate Banking Committee abruptly canceled a vote on pivotal market structure legislation. The bill, which aimed to establish regulatory clarity for digital assets, was pulled following opposition from Coinbase CEO Brian Armstrong, who declared the current draft "materially worse than the status quo."

The fallout was immediate and severe. Circle's stock plunged to $76.60 with $1.2 billion in trades, while Coinbase dropped to $239.26 on $83.4 million volume. Robinhood crashed to $110.36, erasing over $20 billion in combined market value. The selloff spread across the sector, with Exodus leading declines at 11.09%, followed by Bitmine (-5.48%), CleanSpark (-4.42%), and Riot Platforms (-4.33%).

Even smaller players like Exodus, with just $44K in daily volume, weren't spared. The rout extended to payment firms like PayPal and Block, demonstrating how regulatory uncertainty continues to weigh heavily on crypto-adjacent businesses. As Armstrong's stance suggests, the industry now faces a paradox: the lack of clear rules may be preferable to harmful legislation, but the resulting volatility comes at a steep price.

Coinbase CEO Lobbies Against Senate Bill Threatening Stablecoin Rewards

Coinbase CEO Brian Armstrong personally intervened at the U.S. Capitol to halt a Senate bill that WOULD have prohibited crypto platforms from offering rewards on stablecoin holdings. The proposed legislation, years in the making, was abruptly pulled from a Banking Committee vote after Armstrong's public criticism.

Banking lobbyists had inserted provisions targeting yield-bearing crypto products, which Armstrong called an anti-competitive move. "The biggest issue was how they tried to sneak in rules that would shut down reward programs," he told reporters. Stablecoin rewards have become a profitable growth area since the GENIUS Act's implementation under former President Trump.

The confrontation highlights escalating tensions between traditional banks and crypto firms over dollar-pegged stablecoins, which have surged in popularity. While users embrace the interest-like rewards, banking interests are pressuring lawmakers to ban such features through backdoor regulatory changes.