Blockchain Base, Coinbase’s tokenless layer 2 protocol, continues to expand and add more applications. The second quarter recorded many notable successes, promoting network efficiency.
Base’s “onchain summer” effect is starting to bear fruit as the platform grows across most metrics. The network not only has an increased number of supported applications, but also takes on the role of a popular chain providing important cryptocurrency services.
Recent research from Token Terminal shows that Base is successful in both acquiring new users and retaining a loyal base. User traffic has increased since the beginning of 2024, with up to 25% of users remaining on the platform for more than a month.
The number of daily transactions also peaked on Base in June, reaching a record of over 3.1 million. Activity has also become more stable over the past two months. In terms of value, Base has a turnover of nearly 200K ETH per day.
Source: Token Terminal
Base not only pulls users from other chains, but also attracts ETH deposits into its DeFi applications. In June, a total of 620,977 ETH was connected to the Base chain, which acts as a wrapped token for trading and liquidity pools.
Base accounting for part from the Ethereum ecosystem, layer 2
Traffic on Base is partially sourced from applications that previously worked on Ethereum and the layer 2 scaling protocol. Base has taken the edge off of other major layer 2 hubs like Arbiutrum, Optimism, and Polygon. Low fees on Base attract traders, making Uniswap routers the most used on the network.
Source: Token Terminal
ETH is also the most widely bridged token on Base, with inflows accelerating since March. Other tokens include the two main stablecoins USDT and USDC, as well as DAI. Base is a tokenless protocol and has not announced upcoming assets. For that reason, liquidity pools are the most widely used assets in the DeFi ecosystem.
Tstabilize the bridging value | Source: Dune Analytics
Another highly active coin is USDC, a fully transparent stablecoin designed specifically for mainstream users. Other active applications include 1inch exchange, another influential platform on the DeFi scene this year.
The deployment of applications on Base, along with the “onchain summer” campaign, has driven the expansion of the number of Base users. Every day, more than 500k wallets interact with the blockchain, far exceeding Ethereum’s 300k daily users. Base is also approaching Solana, which has 800k daily users.
Starting July 2, Base will also partner with Apebonds to introduce an open finance system. Apebonds accepts multiple assets in exchange for NFT bonds that pay out income over time. The goal is to ensure sufficient locked liquidity while also providing benefits to bond buyers. Base is the latest addition to Apebonds, which is now available on BNB Chain and the Linea ecosystem.
Base aiming arrive developers
In a time when most tokens are stagnant, projects aim to increase their ability to attract developers and build new features. Base currently attracts 32 core developers, compared to Solana’s 75. However, it is important to understand that Solana’s blockchain gained mass appeal, then lost most of its development activity.
Base aims to attract talent back to build real features and move away from meme-based trading. Base also partners with other projects to offer incentives to new builders.
Base recently announced the recipients of its 2024 Builder grant. In June, the chain completed a month-long Buildathon, distributing $198,000 in prizes and rewards. Base is also a potential hub for rekindling interest in NFTs and Web3 gaming, a sector that has yet to recover from the bear market and crash of 2022.
The network is also trying to integrate error proofs, or a tool with which any actor can generate verifiable network state. The goal is to decentralize movement between Base and layer 1 chains like Ethereum. The new withdrawal method will be deployed on testnet from July 15. To increase security, Base will increase the waiting time to one week. There is currently no deadline for the official launch of bug proof on the mainnet Base.
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According to Cryptopolitan
