The Base network, a layer-2 solution built on Ethereum, has seen a significant increase in assets locked recently. Data from L2beat shows that the total value locked (TVL) on Base has surged by about 200% in the last month, reaching over $3 billion.
Key contributor Jesse Pollak revealed on Twitter that Base crossed the $2 billion mark just five days before hitting $3 billion. The network took 203 days to reach its first billion and only 23 days to double it.
Furthermore, on-chain data indicates that Base’s growing TVL is accompanied by a rapidly expanding user base. According to the Dune analytics dashboard by Watermeloncrypto, the network’s daily active users have surpassed 5 million this week, generating over $36 million in total revenue.
Experts believe that Base’s growth could attract more businesses to start developing on-chain applications. Ryan Watkins, the founder of Syncracy Capital, stated on Twitter that Base could be a catalyst for enterprises to build on the blockchain once they realize the revenue potential.
The network’s growth can be attributed to various factors, including the rise of meme coin activities and the introduction of innovative products. The surge in meme coins on Base has led to increased liquidity and a positive market sentiment, with analysts speculating that these assets could drive the next phase of adoption.
Base’s network fees briefly surpassed those of rival layer-2 solutions due to the proliferation of meme coins, despite the implementation of the Dencun upgrade. To manage the increased demand, the network adjusted its gas fee target, providing more capacity.
Additionally, developers have been creating new products on Base, further fueling adoption. Recently, the network welcomed Degen, one of the first layer-3 networks, to its ecosystem, offering lightning-fast transactions that settle on layer-2 solutions like Base instead of directly on Ethereum.
Coinbase has also been making efforts to develop a native smart wallet for Base that eliminates the need for seed phrases or private keys. This move could potentially bring Coinbase’s large user base to Base, driving further growth.
To incentivize developers to contribute to the network, Coinbase plans to offer grants for building on Base. Pollak mentioned that gas grants will be given upfront with a path to scaling, while builder grants will be primarily retroactive to create aligned incentives and encourage a strong builder culture.
