Base Network Sees Steady Growth
Base Network, a secure and low-cost Ethereum Layer-2 solution, made some headlines in the crypto universe as the network surpassed $735 Million in Total Value Locked (TVL) and has seen steady growth during the past few days. Base Network achieved a daily transaction speed (TPS) 3.45, with over 6.97 million transactions in the last 30 days.
Growth & Challenges of Base Network
The project, nurtured by Coinbase, shows consistent growth, although the rate has slowed since its initial surge. As of the latest data from L2Beat, Base’s total value locked (TVL) is nearly $735 million, marking a 4% increase in the past week.
The data provided by L2Beat showed that since the official launch of the Base Network in August 2023, the TVL representing the total dollars within the network has increased from $592 million at the end of November and exceeded $600 million.
Meanwhile, according to the data, DUNE Analytics reported that Base Network’s user engagement has consistently risen, reaching over 2.5 million cumulative users by November 1 and exceeding 3 million by December 22, 2023.
The daily active user count is a testament to its expanding community, with numbers soaring from the launch to more than 70,000 in most of November and December. Ethereum’s daily trading volume on Base leaped from 1 ETH to 36,942 ETH in November and nearly doubled to 79,354 ETH by December.
Utilizing the optimistic rollup framework, Base Network supports various decentralized applications and maintains a daily transaction speed (TPS) of 3.45, completing over 6.97 million transactions in the past 30 days.
Notably, Base Network has ventured into music, minting its first single as an NFT. Despite its achievements, Base has encountered challenges, from scam tokens to a significant 43-minute outage on September 5, nearly a month post-launch.
Comparison with Industry Leaders & Base Network’s Future
Base’s growth is noteworthy in the broader context, especially when compared to Arbitrum One’s $8.70 billion TVL and OP mainnet’s $5.73 billion TVL.
Base’s growth trajectory is stabilizing, and its fluctuating TVL is likely due to its recent introduction, limited DeFi protocol options, and early struggles with fraudulent tokens and security breaches.
Nevertheless, the rapid increase in users, transactions, and daily volumes suggests a sustained interest and promising future for Base Network.
What is a Base Network?
The Base Network is an Ethereum Layer 2 (L2) chain developed to provide a secure, cost-effective, and developer-friendly environment for building on-chain applications. It was created using the OP Stack in partnership with Optimism and is being incubated by Coinbase.
Drawing on Coinbase’s decade of experience in the crypto industry, Base is planned to be progressively decentralized, with no current intentions to issue a new network token.
Key Features of the Base
- Secured by Ethereum: Base leverages Ethereum’s security and scalability to support decentralized apps.
- Empowered by Coinbase: Base offers seamless integration with Coinbase products, facilitating easy fiat onramps and access to tools for developers.
- Cost-Efficient with Big Features: It promises full EVM compatibility at lower costs. The Base Network is dedicated to advancing the developer platform, offering features like gasless transactions for apps and user-friendly APIs for account abstraction.
Open Source and Community-Focused: With a vision to become a decentralized, permissionless, and open superchain, Base is aligned with Optimism’s goal of creating a standard, modular, rollup-agnostic superchain.
In summary, Base Network is positioned as a versatile and secure layer for developers to build decentralized applications, backed by the security of Ethereum and the support of Coinbase’s ecosystem.
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