Base, the Ethereum layer 2 network, has seen locked assets surge by nearly 200% over the past month to more than $3 billion, according to L2beat data.
Featured Contributor Jesse Pollak revealed The base achieved its $3 billion target just five days after crossing the $2 billion threshold. Notably, it took the network 203 days to reach its first $1 billion and just 23 days to reach $2 billion.
Moreover, on-chain data shows that increased TVL is consistent with an ever-expanding user base. Base’s daily active users surpassed 5 million this week, and the network’s total revenue has already exceeded $36 million, according to the Dune analytics dashboard curated by Watermeloncrypto.
As a result, industry experts expect Base’s growth to encourage more companies to enter on-chain development. Ryan Watkins, founder of Syncracy Capital said:
“Imagine if Wall Street found out that Coinbase was generating over $500 million a year in revenue from Ethereum rollups. Base can be the ultimate catalyst for enterprises to build on-chain.”
Why fundamental indicators are rising
The exponential growth of the network can be attributed to a variety of factors, including a notable surge in meme coin activity and the emergence of innovative products.
There has been a noticeable surge in memecoin traction on Base recently. As a result, Base has become more liquid and market sentiment has become more favorable as industry analysts speculate that the asset could drive the next round of adoption.
especially, CryptoSlate Base’s memecoin outbreak reported a brief surge in network costs compared to its competitors’ layer 2 networks, despite the introduction of the Dencun upgrade. To manage this surge, the network adjusted its gas rate target to 3.75 mgas/s, increasing capacity by 50%.
Base has also seen a surge in cryptocurrency developers developing new products on layer 2 solutions, further driving adoption and usage.
For context, Base recently introduced Degen, one of the pioneering layer 3 networks, into its ecosystem on March 28th. said:
“L3 is an appchain that provides very fast transactions because it settles on an L2 like Base instead of connecting directly to Ethereum. The new on-chain internet requires new models for scaling, and L3 leverages the power of L2 in new ways.”
Andrew Forte, Director of Business Development at Dappd also highlighted Coinbase’s latest effort to develop a native smart wallet that does not require seed phrases or private keys for a layer 2 solution. According to him, this wallet could help attract Coinbase’s massive user base to Base.
Coinbase plans to incentivize developers to contribute to the network through grants, giving them the freedom to build and rewarding those who have a positive impact on the ecosystem.
pollack Added:
“Gas subsidies will be provided in advance along with the expansion route. Builder subsidies are primarily applied retrospectively because they have been observed to create aligned incentives and a strong builder culture.”