The investment trends in the market shift periodically, with capital flowing from one hype area to another. While meme coins with low market value once garnered attention, the focus has since shifted to AI tokens and subsequently to Layer 2 (L2) solutions. Despite not offering airdrops, BASE network, a Layer 2 solution, is experiencing intriguing growth.
Launched by Coinbase, BASE network was upfront about not providing airdrops from day one. Nevertheless, the crypto community often sees new networks as potential airdrop farming opportunities. However, BASE has proven to be a barren tree in terms of direct yield, yet it still attracts large crowds seeking its shade.
The allure of BASE Network is reflected in its Total Value Locked (TVL), which has surpassed $735 million according to recent data from L2Beat. Since its launch in August 2023, the network saw a TVL of $600 million by the end of November. Additionally, the number of participants in the BASE network has grown from 2.5 million last month to over 3 million cumulatively, as reported by Dune Analytics.
Coinbase, the largest cryptocurrency exchange by volume in the United States, has announced steps to diversify its revenue, which includes launching the BASE network alongside global exchange and futures trading services. This move is significant for Coinbase, given its status as a highly regulated crypto company and publicly traded entity in the stock market.
While BASE itself won’t distribute airdrops, the protocols within its network haven’t ruled out such incentives, leaving the door open for its 3 million users to potentially receive rewards. More importantly, as interest in Real World Assets (RWA) grows, there’s speculation on whether Coinbase will offer services similar to those provided by Chainlink through BASE. The network could evolve into a hub for tokenizing real-world assets, particularly for institutional investors in the U.S.
In summary, the BASE network, a seemingly fruitless tree, is growing, and we may hear more about it in the future as it potentially transforms into a significant platform for asset tokenization.