Since its mainnet launch on August 9, 2023, Base, an Ethereum Layer 2 solution incubated by Coinbase, has ignited remarkable growth within the blockchain ecosystem. This analysis draws insights from recent data compiled by Delphi Digital and highlights Base’s trajectory in 2024, where its daily transaction volume skyrocketed by an astounding 1,600%. The tremendous growth of Base impacts not just its user base, but the overall dynamics of the on-chain economy.
By January 2024, Base recorded approximately 372,000 daily transactions, a figure that grew exponentially to over 6.63 million by October. This staggering increase underscores Base’s prominence in a competitive landscape. As it captures attention in terms of total value locked (TVL), active users, and transaction frequency, one cannot help but appreciate how these metrics not only signify growth but also reveal ecosystem engagement.
Base’s TVL saw an impressive leap from $439 million in January to $2.51 billion by October, marking a 470% rise, which is indicative of heightened interest and utilization of the Layer 2 solution. Alongside this growth, its share of the global on-chain TVL expanded significantly, climbing from a mere 1.07% to 3.59%. Such figures establish Base as a noteworthy contender in the broader Ethereum ecosystem even though it is still playing catch-up to more established networks.
One of the factors contributing to Base’s distinctive character is its emphasis on non-monetary applications. Unlike its peers that may focus predominantly on DeFi activities, Base strategically positions itself to cater to various digital use cases, leading to diverse network utilization. Although its TVL lags compared to major players, this deliberate focus attracts users interested in more than just capital investment.
A significant aspect of Base’s rise comes from its association with stablecoin usage. By November 11, the platform saw remarkable growth in stablecoin volume, which escalated from a modest $620 million in January to an overwhelming $55 billion. This astronomical increase showcases Base’s ability not only to attract transactions but to build a robust ecosystem catering to various user needs. As stablecoins became more integrated into the network, they grew to comprise a significant 18% of the stablecoin market share, up from 0.7% earlier in the year.
Emerging data indicates that the growth in active addresses has been nothing short of phenomenal. The number of weekly active addresses on Base transitioned from 300,000 in January to approximately 6.61 million by the end of October, representing an impressive spike of 2,100%. Such figures not only signal increased adoption but also portray a healthy ecosystem characterized by user retention and engagement.
Moreover, Base has also captured a significant market share of new daily active addresses, which jumped from just 8,320 in January to 450,000 by October—a 5,300% increase. This surge in new users places Base’s market share for daily active addresses from a modest 1.2% to 6.5%, solidifying its standing as a contender in the bustling Layer 2 landscape.
Base’s rapid growth can be attributed to several interwoven factors: a surge in transaction volume, the strategic use of stablecoins, and a rising number of active users. The unprecedented increase in daily transactions—from 2.1 million to 42.34 million—alongside a jump in market share from 0.67% to 9%, illustrates Base’s ability to adapt and thrive amid a melting pot of competition.
While Base’s focus on non-monetary applications sets it apart, its remarkable performance amidst the broader on-chain economy signifies the growing importance of diverse blockchain applications. As growth trajectories continue upwards, and with stablecoin adoption fueling network efficiencies, Base is poised not just as a player in the Ethereum Layer 2 space but as a potential leader in reshaping the blockchain experience for various users. The roadmap ahead is promising, and with ongoing developments, Base’s future appears exceedingly bright.