Base Chain: The Rapidly Rising Star Project of Layer 2

Base Chain is a project incubated by Coinbase, aiming to be part of the Optimism superchain. Since its launch, Base Chain has developed rapidly, with a total locked value of (TVL) surpassing established Layer 2 projects like Arbitrum and Optimism, making it the current top-ranked Layer 2 solution in terms of TVL.

Overview of Base Chain

The Base chain is built on the Optimism OP Stack development toolkit and utilizes Optimistic Rollups technology. This technology is highly compatible with Ethereum, making it easy for decentralized applications ( dApp ) to migrate, while also having lower computational complexity, making it suitable for executing general smart contracts and complex computational tasks.

To enhance decentralization, Base plans to introduce multiple sorting nodes through OP Stack, reducing reliance on a single sorting service. The ultimate goal of OP Stack is to build a superchain that can integrate different Layer 2s, (Superchain), achieving interoperability.

Base has joined the OP Stack and Superchain development as the second core development team, dedicated to enhancing the activity of the superchain, adding value to it, and promoting the development of the developer ecosystem. Base aims to create a highly integrated chain network, providing users with a seamless experience, so that protocols built on Base in the future can smoothly integrate into the final superchain.

Base Chain Data Analysis

TVL growth

Since September, the TVL of the Base chain has increased from $1.419 billion to $2.388 billion, an increase of 68.28%. Among all Ethereum Layer 2s, Base's TVL has grown the fastest.

User Growth

The number of addresses on the Base chain has increased from 24.55 million to 74.88 million in the past three months, an increase of 205.01%. This indicates that users are optimistic about the development prospects of Base, and there may be a wealth creation effect on the chain, attracting a large number of users to participate.

Revenue Growth

Base chain revenue increased from 19.78 million USD in March to 76.55 million USD in October, a total increase of 287%, with an average monthly growth of 41%. As user activity increases, Base's revenue continues to grow rapidly.

trading volume growth

The trading volume of the Base chain increased from 13.45 million in May to 47.06 million in October, with a total increase of 249% and an average monthly growth of 49%. The trading volume shows a rapid and sustained growth trend.

on-chain performance

The transaction volume of Base reaches 66.28 TPS (, surpassing other Ethereum ecosystem projects and showing the best performance.

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Circle)USDC('s support for Base

Circle officially announced support for the Base chain, with USDC natively issued on Base. Users can use USDC without bridging, greatly simplifying the operation process. Circle has also developed the CCTP cross-chain transfer protocol, enabling the native burning and minting of USDC on the Base chain.

Coinbase has partnered with Stripe to bring USDC to the Base platform, enabling faster and lower-cost cross-border transfers and conversions from fiat to cryptocurrency. This further promotes the use of USDC within the Base ecosystem, and by October 2024, the trading volume of USDC on the Base chain DEX has exceeded $20 billion.

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Base Chain Ecosystem Development

The Base chain ecosystem covers multiple areas including Wallet, Bridge, DeFi, Gaming, DAO, Infrastructure, Social, Security, and NFT, with a total of 323 Dapps.

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) DeFi track

In the DeFi space, Aerodrome, Uniswap, and Morpho Blue are the top three projects by TVL.

Aerodrome, as the first DEX on the Base chain, adopts the Ve###3,3( model, providing a unique reward mechanism to incentivize long-term holders and active governance users. Its TVL accounts for more than half of the total TVL on the Base chain.

Morpho Blue is an innovative decentralized lending protocol that introduces permissionless risk management and market-making mechanisms to enhance the efficiency of the lending market.

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) Meme Coin Track

Meme coin projects such as TYBG, Degen, and Brett frequently appear on the Base chain, attracting a large amount of market traffic in a short period. Although these projects carry high risks, they have also brought a significant influx of users and funds to the Base chain.

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) SocialFi track

Friend.tech and Farcaster are the most influential SocialFi projects on the Base chain.

Friend.tech allows users to monetize social value by purchasing keys from Twitter users. Although it achieved significant success initially, user activity has declined in the later stages.

Farcaster adopts a decentralized social network protocol and offers a Web 2.0-like user experience through Frames plugins. Its ecological project Warpcast combines elements of traditional social media with blockchain characteristics, gaining widespread attention.

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Coinbase's Innovations on the Base Chain

Coinbase has launched the Based Agents service, allowing users to quickly create AI agents on the Base chain. These agents have cryptocurrency wallets and can conduct transactions, transfers, and pre-programmed trades without real-time supervision.

Virtuals Protocol is one of the most popular AI agent products on the Base chain. It provides a platform for creating, deploying, and monetizing AI agents, introducing the Pump.fun model that transforms AI agents into revenue-generating assets.

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Conclusion

With the support of Coinbase, innovative technology applications, and a rich variety of ecological projects, Base chain has become one of the most promising Layer 2 solutions in the Ethereum ecosystem. Its excellent performance in key indicators such as TVL, user growth, and transaction volume, as well as its layout in popular sectors like DeFi, meme coins, and SocialFi, provide strong infrastructure support for the development of decentralized finance and Web3. In the future, Base chain is expected to continue leading Layer 2 innovation and promote further development of the crypto ecosystem.

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