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Ethereum Layer-2 Network Base Experiences Remarkable Growth in TVL
The Ethereum layer-2 network, Base, has achieved a significant milestone with a substantial increase in assets locked. Recent data from L2beat reveals that Base’s total value locked (TVL) has surged by around 200% in the last month, exceeding $3 billion.
Key Milestones Achieved
Jesse Pollak, a key contributor to Base, disclosed that the network surpassed the $3 billion mark just five days after crossing the $2 billion threshold. This rapid growth is noteworthy, considering that it took Base 203 days to reach its first billion and only 23 days to reach the second billion.
Moreover, on-chain data indicates that the surge in TVL is accompanied by a growing user base. According to the Dune analytics dashboard provided by Watermeloncrypto, Base has attracted over 5 million daily active users this week, with total revenue exceeding $36 million.
Implications for the Industry
The exponential growth of Base is expected to have far-reaching implications for the blockchain industry. Industry experts anticipate that Base’s success will incentivize more firms to engage in on-chain development activities.
Ryan Watkins, the founder of Syncracy Capital, shared his perspective on the matter, stating, “Imagine when Wall Street realizes Coinbase is generating over $500 million in annual revenue from an Ethereum rollup. Base may serve as the catalyst for enterprises to build on-chain.”
Factors Driving Base’s Growth
Several factors have contributed to the remarkable growth of Base, including increased activity in meme coins and the introduction of innovative products on the platform.
Recent traction in meme coins on Base has led to higher liquidity and a positive market sentiment. Analysts believe that these assets could drive the next phase of adoption for the network.
Base encountered a spike in network fees due to the proliferation of meme coins, prompting the implementation of the Dencun upgrade. To address this issue, the network adjusted its gas fee target to 3.75 mgas/s, increasing its capacity by 50%.
Furthermore, an influx of crypto developers creating new products on Base has further accelerated adoption and usage of the layer-2 solution. The recent integration of Degen, a pioneer layer-3 network, into Base’s ecosystem signifies the platform’s commitment to fostering innovation and scalability.
Future Developments and Initiatives
Coinbase’s strategic initiatives are expected to play a significant role in driving growth and development on the Base network. The introduction of a native smart wallet that eliminates the need for seed phrases or private keys is poised to attract Coinbase’s extensive user base to Base.
Incentivizing developers through grants and rewards, Coinbase aims to encourage contributions to the network that positively impact the ecosystem. Gas grants will be provided upfront, with a clear path to scaling, while builder grants will be retroactive to cultivate a strong builder culture.
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