Ethereum Layer-2 Network, Base, Sees Remarkable Asset Surge
The Ethereum layer-2 network, Base, has seen a significant rise in locked assets, increasing by around 200% over the past month to over $3 billion, according to L2beat data.
Jesse Pollak, a key contributor, revealed that Base hit the $3 billion mark just five days after crossing the $2 billion threshold. Notably, the network took 203 days to reach its first billion mark and only 23 days to hit $2 billion.
In addition to the increased Total Value Locked (TVL), on-chain data shows a growing user base. According to the Dune analytics dashboard curated by Watermeloncrypto, Base’s daily active users have exceeded 5 million this week, with the network’s total revenue already surpassing $36 million.
Industry Outlook on Base Growth
As a result of this rapid growth, industry experts predict that more firms will enter on-chain development. Ryan Watkins, the founder of Syncracy Capital, stated, “Imagine when Wall Street realizes Coinbase is printing $500M+ in annual revenue from an Ethereum rollup. Base may be the ultimate catalyst that gets enterprises building on chain.”
Reasons Behind Base’s Rising Metrics
The network’s exponential growth can be attributed to various factors, including a notable increase in meme coin activities and the introduction of innovative products.
Recently, Base has seen a significant surge in meme coin traction, resulting in increased liquidity and favorable market sentiment. In response to this surge, the network adjusted its gas fee target to 3.75 mgas/s, increasing its capacity by 50%.
Furthermore, Base has seen an increase in crypto developers creating new products on the layer-2 solution, which further encourages adoption and usage. One of the pioneer layer-3 networks, Degen, joined the Base ecosystem on March 28, stating, “L3s are app chains which deliver lightning-fast transactions because they settle on L2s like Base instead of connecting directly to Ethereum. A new on chain internet demands new models for scaling, and L3s utilize the power of L2s in new ways.”
Future Developments and Incentives
Andrew Forte, the director of business development at Dappd, highlighted Coinbase’s recent efforts to develop a native smart wallet for the layer-2 solution that doesn’t need seed phrases or private keys. This wallet could help drive Coinbase’s vast 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 grants will be upfront, with path to scaling. Builder grants will be primarily retroactive because we’ve observed that creates aligned incentives and a strong builder culture.”
