Following the Dencun system upgrade on March 16, the Layer-2 ecosystem has witnessed a significant shift, with Base, supported by the renowned US-based Coinbase exchange, consistently surpassing its benchmarks. Base’s popularity is now at an all-time high, outperforming the Ethereum main network in several key metrics. An exploration of this phenomenon reveals intriguing data points and trends.
Surge in User Base and Revenue
Despite a drastic reduction in transaction fees by up to 90% post-upgrade, Base network’s revenue saw a 200% surge, jumping by $21 million within a month. This increase in earnings came as a result of heightened activity on the network, undeterred by lower fees. Concurrently, the platform’s user base expanded by 347%, amassing 433,420 active participants. Both the token and NFT segments have contributed to these figures, with the Base ecosystem experiencing an influx of launches and a rise in contract numbers reaching 3.2 million on April 7, setting a new record.
Token and NFT Markets Propel Growth
The recent decrease in commission revenues, observed over two weeks, is linked to the impact of the Dencun upgrade. Simultaneously, a slowdown in token and NFT markets has also affected commission income. Nonetheless, the NFT sector within Base has shown remarkable activity, drawing in artists who made headlines during the 2021 NFT boom. The traction is partly due to the art-focused nature of these collections and their distribution through no-cost events. Moreover, trading volumes on the Base ecosystem have spiked, with a reported $687 million in trades over the past day, highlighted by 1,139,819 successful contract transactions. The blue/WETH pair emerged as the most lucrative investment, boasting a staggering 240,000% increase.
Inferences from this Article
- The Base network’s growth in user activity and revenue suggests a strong market confidence post-Dencun upgrade.
- Art-themed NFTs distributed through free events have notably boosted engagement within the Base ecosystem.
- Investors have identified highly profitable trading pairs within the network, indicating potential investment opportunities.
These developments within Base demonstrate a robust and thriving Layer-2 network that is attracting significant attention from users and investors alike, signaling a prosperous trajectory for the ecosystem.