The Ethereum layer-2 network, Base, has witnessed a notable increase in the number of locked assets, which increased by about 200% in the past month to over $3 billion, according to data from L2beat.
Jesse Pollak, a key contributor, announced that Base reached the $3 billion milestone five days after crossing the $2 billion threshold. Remarkably, it took the network 203 days to reach the first billion mark and just 23 days to reach $2 billion.
Additionally, on-chain data shows that increased TVL comes with an ever-expanding user base. According to the Dune Analytics dashboard compiled by Watermeloncrypto, Base’s daily active users surpassed 5 million this week, with the network’s total revenue already exceeding $36 million.
Consequently, industry experts anticipate that Base’s growth will catalyze the entry of more companies into on-chain development. Ryan Watkins, the founder of Syncracy Capital, said:
“Imagine if Wall Street realizes that Coinbase is squeezing more than $500 million in annual revenue from an Ethereum rollup. Base can be the ultimate catalyst that encourages companies to build the chain.”
Why basic stats increase
The network’s exponential growth can be attributed to several factors, including the notable increase in meme coin activity and the advent of innovative products.
There has been a notable increase in memecoin traction on Base lately. As a result, Base has experienced increased liquidity and more favorable market sentiment as industry analysts speculated that the assets could lead the next phase of adoption.
Remarkable, Crypto reported that Base’s proliferation of memecoins briefly pushed network costs above those of competing Layer-2 networks, despite the introduction of the Dencun upgrade. To manage this increase, the network adjusted its gas compensation target to 3.75 mgas/s, giving it 50% more capacity.
Additionally, Base has witnessed a wave of crypto developers creating new products on the layer-2 solution, further driving adoption and usage.
For context, Base recently welcomed one of the pioneering layer 3 networks, Degen, to its ecosystem on March 28.
“L3s are appchains that deliver lightning-fast transactions because they settle on L2s like Base instead of connecting directly to Ethereum. A new on-chain internet requires new models of scale, and L3s use the power of L2s in new ways.”
Andrew Forte, director of business development at Dappd, also highlighted Coinbase’s recent efforts to develop a native smart wallet that does not require seed phrases or private keys for the layer 2 solution. According to him, this wallet could help bring Coinbase’s massive user base to Base.
Coinbase plans to incentivize developers to contribute to the network through grants, allowing them to build freely and rewarding those who positively impact the ecosystem.
Pollak added:
“Gas subsidies will be provided upfront, with a path to scale. Subsidies for builders will primarily apply retroactively, as we have found that this creates aligned incentives and a strong construction culture.”
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