The Base Network, a layer-2 solution built on the Ethereum framework, has recently achieved a significant growth milestone by reaching a total value locked (TVL) of $2 billion. In the span of just one week, the network saw a 43.61% surge in its TVL, signaling a strong interest from the cryptocurrency community, particularly in memecoin projects and airdrop events. Base benefits from the robust security of Ethereum while facilitating faster transactions at lower costs, which is crucial for the scalability of the Ethereum network.
Strategic Investments Fuel Growth
Coinbase, a leading cryptocurrency exchange with a valuation exceeding $60 billion, has been instrumental in Base’s growth. The exchange, which handles a majority of Bitcoin spot exchange-traded funds in the United States, has formed strategic partnerships that bolster Base’s momentum. Jesse Pollak, who leads Base’s development, stated that a significant share of Coinbase’s revenue is allocated to Base’s advancement, including founder grants and resources for impactful contributors on the platform.
Coinbase’s vision positions Base as a primary entry point into the cryptocurrency market for its vast user base, which surpasses 110 million. The integration with Coinbase’s users offers an effective strategy for acquiring new users, addressing a common obstacle faced by emerging blockchain technologies.
Remarkable User Adoption and Upcoming Enhancements
The strategy has yielded an extraordinary uptick in Base’s adoption. In March, the network’s daily new user registrations soared to 800,000, with revenues jumping from $18 million to $28 million, and daily transactions quadrupling from 500,000 to 2 million. This growth can be partly attributed to the Ethereum Dencun upgrade and the implementation of EIP-4844, which has noticeably reduced network fees, allowing Base to offer competitive services for high-frequency trading.
The ecosystem’s nascent stage coupled with the burgeoning interest in memecoin projects presents vast opportunities for discovery and investment. Analyst Miles Deutscher has suggested that a systematic analysis of token transaction volumes and ownership data could uncover lucrative prospects in this domain. He highlighted Toshi Base as a memecoin project with a robust community presence and the benefit of being an early adopter in the space.