Coinbase’s Base Network Sees Steady Growth, Surpasses $735 Million TVL

The Coinbase-incubated Ethereum layer-2 network Base is showing steady growth, although the rate has slowed since its initial surge. According to the recent data from L2Beat, Base’s total value locked (TVL) is nearly $735 million, exhibiting a 4% rise in the past week.

Since its official launch in August 2023, Base Network’s TVL —a metric reflecting the total dollars held within the network— has increased from $592 million at the end of November and exceeded $600 million. User engagement on Base has been consistently increasing. According to DUNE analytics, it surpassed 2.5 million cumulative users by November 1 and exceeded 3 million by December 22. 

Base Network operates on the Optimistic Rollup framework to support a wide range of decentralized applications (DApps). At the time of writing, the Base’s daily transaction speed (TPS) stands at 3.45, with over 6.97 million transactions completed in the last 30 days.

Base’s Daily ETH Volume, Users

The increasing number of daily active users shows a growing community, experiencing a substantial increase from launch to over 70,000 users in most of November and December. The daily trading volume of Ethereum (ETH) on the network dramatically spiked from 1 ETH to 36,942 ETH in November and nearly doubled to 79,354 ETH by December. 

Despite its upward trajectory, Base Network faced some major challenges during this period. Base witnessed its first outage on September 5, which lasted 43 minutes, approximately a month after its launch.

Solidus Labs, which monitors fraudulent crypto transactions, revealed on August 16 that between mid-July and August 9, the scammers created more than 500 scam tokens on the Base. Scammers made roughly $2 million in profit through these tokens.

Meanwhile, when compared to its counterparts, Base’s growth is significant. It’s competing against giants like OP Mainnet, with a TVL of $5.73 billion, and Arbitrum One, with a TVL of $8.70 billion.

The network’s expansion is stabilizing, but the fluctuations in its TVL could be attributed to factors such as its recent launch, a limited selection of available DeFi protocols, and initial issues with fraudulent tokens and rug pulls. However, the consistent growth in user base, transaction volume, and daily activities indicates a steady interest and potential for Base.