DefiLlama’s data indicates that the decentralized finance (DeFi) platform Base has fallen out of the top 10 Layer 2 (L2) blockchains by total value locked (TVL) after a steady decline. Base’s TVL, which was $412 million, now ranks 11th in terms of DeFi TVL. The platform has witnessed a consistent drop in DeFi activity, leading to a decrease in TVL.
Base’s daily transaction volume through decentralized exchanges (DEXs) hosted on the network has fallen by 28% since January 2, totaling $23.34 million in DEX volume as of January 17, compared to $33.21 million recorded earlier.
Alongside the DeFi sector’s downturn, user activity within the Base ecosystem has also declined. The number of unique wallet addresses sending on-chain transactions daily has decreased by 19% since December 23, resulting in a 29% drop in daily transactions during the same period.
The adoption of friend.tech, a decentralized social network allowing users to trade tokenized shares of crypto personalities, initially boosted Base’s network activity after its launch in August 2023. However, a significant decline in friend.tech usage has impacted Base’s network activity, with daily transactions involving friend.tech falling drastically since September 2023.
The decrease in social network interest has led to a 99% reduction in the daily number of addresses buying keys since October 22, 2023. As the daily user and transaction counts on Base have dropped, network fees and revenue have also decreased, with network fees hitting a two-month low of $40,000 on January 1 and revenue falling by 33% to $7,000 by January 17.