Base Blockchain’s Growth Amid Crypto Winter
Base Blockchain, a layer-2 network launched by Coinbase in 2023, continues to thrive despite the ongoing ‘crypto winter.’ The network is outperforming several major blockchains such as Avalanche (AVAX), Polygon (POL), and Cronos (CRO), showcasing robust growth in user activity and transactions.
Record High Active Addresses and Transactions
According to data from Nansen, Base Blockchain has seen a significant rise in its user base. The number of active addresses has surged to an all-time high of over 1.964 million, a dramatic increase from the year-to-date low of 196,000. Additionally, the number of transactions processed by the network has skyrocketed to 4.8 million, compared to less than 300,000 in January.
Daily Deployments Reach New High
Base Blockchain’s daily deployments also hit a record, nearing 18,000 earlier this month. In contrast, Avalanche’s active addresses and transactions have plummeted by over 50% from their peak earlier this year. Base’s growth can be attributed to its strong transaction speeds and low costs, which have attracted more developers to the network.
Base Blockchain’s DeFi Ecosystem
Base has established a solid foothold in the decentralized finance (DeFi) sector. According to DeFi Llama, the network now hosts 348 decentralized applications (dApps) and has a total value locked (TVL) of $1.57 billion, ranking as the sixth-largest chain in the DeFi space.
- The top dApps on Base include Aerodrome, Uniswap, Extra Finance, AAVE, and Morpho Blue.
- Base also ranks sixth in terms of stablecoins, with over $1.57 billion in its ecosystem.
- It is expected to expand further once it integrates with Tether’s network.
Base’s Role in Decentralized Exchanges
Base Blockchain has also emerged as a key player in the decentralized exchange (DEX) market. In the last seven days, dApps on Base handled a trading volume of $3 billion, making it the third-largest chain in the DEX space. It surpassed Arbitrum, which processed $2.77 billion during the same period.
Low Gas Fees Attract Developers and Users
One of the key reasons for Base’s popularity is its low gas fees. While transaction volumes have surged, gas fees have dropped to just $50,425, down from over $2.3 million in March. To date, Base has generated only $57 million in fees this year, compared to over $1 billion by Ethereum and Tron.
Impact on Coinbase
The success of Base Blockchain is a positive development for Coinbase, which has been losing market share to competitors like Crypto.com, Huobi, and Bybit. Coinbase processed crypto volumes worth $66 billion, while its competitors handled over $70 billion in volume. Base’s growth may help Coinbase regain some ground in the competitive cryptocurrency market.
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