Base Chain: The Rapidly Rising Star Project of Layer 2

Introduction

Base chain is a Layer 2 network built on the Optimism technology stack, aiming to become an important part of the Optimism superchain. Since its launch, Base chain has developed rapidly, and according to data, its total locked value ( TVL ) has surpassed several established Layer 2 projects, becoming the leading Layer 2 solution in the current TVL rankings.

Overview of Base Chain

Base chain is a Layer 2 solution built on the OP Stack open-source toolkit. The Optimistic Rollups technology makes it easier to be compatible with Ethereum, supporting the direct migration of multiple dApps, while having lower computational complexity, making it suitable for executing general smart contracts and complex computational tasks.

To enhance decentralization, Base plans to adopt the OP Stack architecture to introduce multiple sorting nodes, reducing reliance on a single sorting service. The ultimate goal of the OP Stack is to establish a superchain (Superchain), achieving seamless integration and interoperability between different Layer 2s.

Base has joined the development of OP Stack and Superchain as the second core development team, aiming to enhance the activity and value of the Superchain ecosystem. Base hopes to create a highly integrated network that provides users with a smooth experience, ensuring that protocols built on Base can be seamlessly integrated into the final Superchain in the future.

Base Chain Data Analysis

TVL growth

The TVL of Base chain experienced significant growth after September, rising from $1.419 billion to $2.388 billion, an increase of 68.28%. Among all ETH Layer 2s, Base's TVL growth rate ranks first, demonstrating its rapid development trend.

User Growth

The number of addresses on the Base chain surged after August, increasing from 24.55 million to 74.88 million, a growth rate of 205.01%. This indicates that users are optimistic about the development prospects of Base, and there may have been a certain wealth effect on the Base chain, attracting a large number of users to participate.

On-chain income

Base chain revenue grew from 19.78 million USD in March to 76.55 million USD in October, a total increase of 287%, with an average monthly increase of 41%. With the increase in users and activities, Base's revenue has maintained rapid growth.

trading volume growth

The weekly 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 increase of 49%. The trading volume continues to grow rapidly, indicating a continuous rise in on-chain activity.

Performance

The transaction volume of Base reaches 66.28 TPS (, surpassing other competitors and performing the best in the Ethereum ecosystem.

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Circle)USDC('s support for Base

Circle fully supports the Base chain, including:

• Issue native USDC on Base
• Develop the CCTP cross-chain transfer protocol to achieve native burning and minting of USDC on Base.
• Coinbase partners with Stripe to bring USDC to the Base platform
• Supports USDC on Base as an entry point from fiat to cryptocurrency
• Integrate Stripe's fiat purchase feature in the Coinbase wallet

These measures greatly simplified the user operation process, improved transaction efficiency, and promoted the widespread use of USDC in the Base ecosystem. As of October 2024, the transaction amount of USDC on DEX in the Base chain has exceeded 20 billion USD.

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Overview of the Base Chain Ecosystem

The Base chain ecosystem covers multiple areas, including wallets, bridging, DeFi, gaming, payments, DAOs, infrastructure, social, security, NFTs, etc., with a total of 323 Dapps.

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) DeFi track

Main projects include:

• Aerodrome: The first DEX on the Base chain, adopting the Ve###3,3( model.
• Morpho Blue: An innovative decentralized lending protocol
• Extra Finance: provides leveraged lending and automatic compound yield aggregation services

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) Meme Coin Track

Frequent popular Meme coin projects, such as TYBG, Degen, and Brett, have appeared on the Base chain, attracting a large amount of market traffic and user participation.

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) SocialFi track

• friend.tech: Monetizing social value by tokenizing user influence.
• Farcaster: A decentralized social network protocol that uses innovative hybrid storage technology.

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Coinbase's Innovations on the Base Chain

Coinbase launches the Based Agents service, allowing users to quickly create AI agents on the Base chain. Virtuals Protocol has become one of the most popular AI agent products on the Base chain, focusing on the creation, deployment, and monetization of AI agents.

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Summary

Base chain, launched by Coinbase as a Layer 2 network, excels in key metrics such as TVL, user growth, and trading volume, thanks to its strong technical support and rich ecosystem. Through deep collaboration with Circle, Base has optimized user experience and cross-border payment efficiency. At the same time, Base actively explores the integration of AI and blockchain, providing strong support for the development of decentralized finance and Web3. Base has become one of the most promising Layer 2 solutions in the Ethereum ecosystem, with the potential to continue rapid growth in the future.

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