Despite the recent volatility in the broader cryptocurrency market, Layer 2 networks have continued to witness significant activity, with Base emerging as the primary choice for new capital deployment, according to the latest analysis by IntoTheBlock (ITB).

Base, Coinbase's Ethereum layer-2 solution launched in August 2023, has attracted substantial investor interest, with net ETH deposits exceeding 6,500 ETH over the past week. This surge in deposits significantly outpaced rival Layer 2 solutions like Arbitrum and Optimism, indicating investors' preference for Base due to factors such as its established infrastructure and perceived reliability.

Coinbase's Q1 report highlighted Base's growing trading volume, especially following Ethereum's Dencun upgrade. DeFi crypto exchanges on Base recorded daily trading volumes surpassing $1 billion, closing the gap between Base and Coinbase's main centralized exchange. The Dencun upgrade reduced costs for Layer-2 scaling chains like Base, resulting in increased user engagement and transaction volume.

However, Base's popularity has also made it a target for scammers. Scam Sniffer's data revealed a surge in scammer activity on the network, with two of the top 10 largest single thefts occurring on Base, constituting 21% of the month's total theft. Since January, scammer activity on the network has surged by almost 1,900%, resulting in approximately $170,000 stolen through phishing scams, with ERC-20 tokens being the primary target.

Despite the challenges posed by increased scammer activity, Base's robust infrastructure and growing user base position it as a leading player in the Layer 2 ecosystem. As investor interest in Layer 2 solutions continues to grow, platforms like Base are expected to play a pivotal role in facilitating the scalability and accessibility of decentralized applications on the Ethereum network.