Layer 2 Networks Process 5x Ethereum Transactions, Market Dynamics Draw Attention
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
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Source: Benzinga
- Transaction Volume Surge: Layer 2 platforms now process 5.19 times the transaction volume of Ethereum, indicating robust growth in the blockchain ecosystem that is likely to attract more developers and users.
- Market Share Analysis: Arbitrum commands 44% of the market share with approximately $16.7 billion in TVL, while Base follows closely with a 33% market share and around $12.5 billion, highlighting intensifying competition in the space.
- Fee Economics: The average transaction fee on Layer 2 is $0.08 compared to $3.78 on Ethereum mainnet, leading users to prefer lower-cost solutions, thereby driving user migration.
- Developer Engagement: Base has seen a significant increase in its developer community over the past year, demonstrating its potential to attract long-term builders, which is crucial for the future development of its ecosystem.
Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COIN is 400.63 USD with a low forecast of 266.00 USD and a high forecast of 510.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
15 Buy
6 Hold
1 Sell
Moderate Buy
Current: 239.280
Low
266.00
Averages
400.63
High
510.00
Current: 239.280
Low
266.00
Averages
400.63
High
510.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the cryptoeconomy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. Its platform helps people and institutions to engage with crypto assets, including trading, staking, safekeeping, spending, and global transfers. It offers products and services to various customer groups: individuals, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime Trading, markets, base protocol and Coinbase wallet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
