- Base Network’s total value locked (TVL) has surged over 200% in the past month to exceed $3 billion, with daily active users now over 5 million
- Growth is attributed to increased memecoin activity and new product development on the layer-2 network
- Coinbase plans to incentivize more developers through grants to build on Base, which could convince more enterprises to develop on-chain
Coinbase-Backed Ethereum Layer-2 Network Sees Remarkable Growth
The Ethereum layer-2 network Base has witnessed a remarkable surge in assets locked, soaring by approximately 200% over the last month to over $3 billion, according to L2beat data.
Key contributor Jesse Pollak disclosed that Base hit the $3 billion milestone five days after crossing the $2 billion threshold. Notably, the network took 203 days to reach its first billion mark and just 23 days to touch $2 billion.
Furthermore, on-chain data shows that the increased TVL is matched with an ever-expanding user base. According to the Dune analytics dashboard curated by Watermeloncrypto, Base’s daily active users have surpassed 5 million this week, with the network’s total revenue already exceeding $36 million.
What’s Driving Base Network’s Exponential Growth?
The network’s exponential growth can be attributed to various factors, including the notable surge in meme coin activities and the advent of innovative products.
There has been a notable surge in memecoins traction on Base recently. Consequently, Base has experienced heightened liquidity and more favorable market sentiment as industry analysts speculated that the assets could spearhead the next adoption phase.
Moreover, Base has witnessed a surge in crypto developers creating new products on the layer-2 solution, further fostering adoption and usage. For context, Base recently welcomed one of the pioneer layer-3 networks, Degen, to its ecosystem on March 28.
Coinbase Incentivizing Developers to Build on Base
Coinbase plans to incentivize developers to contribute to the network through grants, allowing them to build freely and rewarding those who positively impact the ecosystem.
Pollak added: “Gas grants will be upfront with path to scaling. Builder grants will be primarily retroactive because we’ve observed that creates aligned incentives and a strong builder culture.”
Industry Insiders Foresee More Firms Building On-Chain
Industry insides believe that the Coinbase-backed network’s success might catalyze more firms into on-chain development.
Ryan Watkins, the founder of Syncracy Capital, said: “Imagine when Wall Street realizes Coinbase is printing $500M in annual revenue from an Ethereum rollup. Base may be the ultimate catalyst that gets enterprises building onchain.”
