Base: A Deep Dive Into Coinbase's Darling Product 🔵
Base: A Deep Dive Into Coinbase's Darling Product 🔵
With social metrics pointing at a Base season, let's explore how you can benefit from the latest L2 gaining traction in the space
Key Takeaways🍿:
Base has no native token and instead relies on ETH for transactions💎
Base has reached a TVL of $1.2 billion and has seen a surge in trading activity🔺
Base's success is attributed to its affiliation with Coinbase, its expanding ecosystem, and its scalability and low transaction fees🔵
In the dynamic blockchain arena, one network is steadily gaining traction. Base has become one of the most active blockchain networks, drawing significant user interest. Let’s unravel the intricacies of Base's ascent, exploring its innovative technology and burgeoning ecosystem.
What Is Base?
Base is an Ethereum Layer 2 network developed by Coinbase. Base leverages the Optimism’s OP Stack to provide Ethereum dApps with scalability and cost-efficiency. Unlike many other layer 2s, Base lacks it’s own native token and instead, relies on ETH for transactions and operations.
Bridging to Base is simple, requiring users to transfer Ethereum or supported ERC-20 tokens via the official Base bridge or partnering platforms.
Base By The Numbers: A Look Into Base’s Metrics
Despite being a new entrant into the layer 2 scene, Base has already amassed a TVL of $1.2 billion in TVL. Base reached a milestone last weekend with a record-breaking daily trading volume of $1.22 billion on DEXs. In the past few days, Base has maintained a trading volume of over $500 million.
The network has seen increased user engagement, with Daily Active Users (DAU) interacting with DEXs reaching 172,000 during peak trading activity. Daily transaction volume peaked at over 2 million. These figures make Base one of the most active networks, rivaling veteran blockchains like Solana and Ethereum across different metrics.
What's Behind The Base Surge?
The Base ecosystem is still quite nascent at best. This surge in trading activity is mainly driven by memecoin trading on the network. Popular Base memecoins like DEGEN and BRETT, have already surpassed half a billion in market capitalization.
Many traders are anticipating the onset of "Base season," hoping to mirror the momentum seen on the Solana network. Prominent influencers in the crypto space have likened Base to an "early Solana" and foresee the development of several billion-dollar memecoins on the network.
Similarly, contributors to Base have hinted that the network may become the "largest non-Ethereum on-chain economy." Notably, a significant portion of participants anticipate this milestone within the next 3 months, underscoring the widespread optimism surrounding Base's future growth and market position.
Top 5 Hottest Projects On Base
As the Base ecosystem continues to thrive and evolve, let's take a closer look at the top 5 hottest projects making waves within its vibrant community:
SeamlessFi (SEAM): SeamlessFi (SEAM) is a native DeFi protocol within the Base ecosystem, offering advanced lending and borrowing services.
Aerodrome Finance (AERO): Aerodrome Finance is a next-generation Automated Market Maker (AMM) that aims to be the central liquidity hub on the Base blockchain.
Brett (BRETT): Largest Base meme coin by market cap. Traders are anticipating a $1 billion valuation soon.
Toshi (TOSHI): $TOSHI is a memecoin named after both Coinbase co-founder Brian Armstrong's cat and the pseudonymous creator of Bitcoin, Satoshi Nakamoto.
Degen (DEGEN): Originally conceived as a reward token within the Farcaster Degen channel, DEGEN has grown into one of Base’s most popular memecoins.
Echelon Prime (PRIME): Echelon Prime is an innovative project revolutionizing web3 gaming with its utility token, PRIME, which powers token-gated products, services, and gaming experiences within the Echelon ecosystem.
Base's ecosystem is continually expanding, with many more innovative projects set to launch in the near future.
Base X Coinbase Affiliation: A Recipe For Success
While Base boasts some impressive numbers like extra low fees and incredible scalability, it’s major selling point and recipe for success lies somewhere else. Base’s affiliation with Coinbase is what truly sets it apart.
With Coinbase poised to facilitate the onboarding of its millions of users onto the Base network, this affiliation has become a major selling point. The prospect of seamless integration with Coinbase has sparked positive sentiment and optimism among investors, further bolstering Base's position in the market.
Base Bull Vs. Bear Case
Base's strategic affiliation with Coinbase serves as a significant advantage, offering access to Coinbase's extensive user base. This partnership streamlines user onboarding and augments participation within the Base ecosystem. Additionally, the potential for Base to secure further partnerships beyond Coinbase presents opportunities for continued growth and expansion.
The expanding ecosystem of Base is another factor contributing to its bullish sentiment. With a diverse range of projects and dApps being built on the network, Base continues to attract new users and developers. Its scalability and low transaction fees compared to the Ethereum mainnet make it an attractive option for DeFi and other applications, further fueling its growth prospects.
One hurdle the network faces is the right competitive landscape led by the likes of Arbitrum and Optimism.Base must differentiate itself to maintain relevance, and this won’t be easy given the fact that it’s competitors also have impressive technical capabilities. Regulatory uncertainty adds another layer of risk, especially in a U.S-focused market.
Conclusion
While still in its infancy, Base exudes immense potential for success. With strong backing from Coinbase, innovative technology, and a growing ecosystem, the network is poised to make significant waves in the blockchain and DeFi space.
As Base continues to mature and expand its reach, it stands on the cusp of realizing its vision and cementing its place as a key player in the future of decentralized finance.