Base Chain: The Rapidly Rising Star Project of Layer 2

Base Chain is a project incubated by a well-known trading platform, aiming to become a part of a certain super chain. Since its launch, Base Chain has developed rapidly, with its TVL surpassing multiple established Layer 2 projects, rising to the top of the Layer 2 rankings.

Overview of Base Chain

Base chain is a Layer 2 solution built on a certain open-source technology stack. As a type of Optimistic Rollups, it has good Ethereum compatibility, facilitating dApp migration, while having lower computational complexity, making it suitable for executing general smart contracts. To enhance decentralization, Base plans to introduce multiple ordering nodes to reduce reliance on a single ordering service.

Base has joined the development of a certain technology stack and superchain as the second core development team, committed to enhancing the activity and value of the entire ecosystem. Base aims to create a highly integrated chain network to provide users with a seamless experience and achieve interoperability with multiple chains.

Base Chain Data Analysis

TVL

The TVL of the Base chain saw a significant increase after September, rising from 1.419 billion to 2.388 billion, a growth rate of 68.28%. This growth rate ranks first among all ETH Layer 2s, demonstrating the rapid development of the Base ecosystem.

On-chain address count

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

on-chain income

Base chain revenue increased from 19.78 million USD in March to 76.55 million USD in October, with a total increase of 287% and an average monthly increase of 41%. The revenue growth is in sync with the increase in users and activities.

weekly trading volume

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

On-chain performance

The TPS of Base reached 66.28, surpassing other chains, making it the most performance-optimized Layer 2 solution in the Ethereum ecosystem.

In summary, the Base chain has shown rapid growth in key indicators such as TVL, user numbers, transaction volume, and revenue, demonstrating strong development momentum.

Stablecoin Support

A certain stablecoin issuing institution has provided comprehensive support for the Base chain, including the native issuance of stablecoins and cross-chain transmission protocols. This greatly simplifies the user operation process and improves efficiency. At the same time, the collaboration between a certain trading platform and a payment company further expands the application scenarios of stablecoins in the Base ecosystem, including support for cross-border payments and convenient fiat entry.

As of October 2024, the trading volume of a certain stablecoin on the DEX of the Base chain has exceeded 20 billion USD, making an important contribution to the prosperity of the Base ecosystem. The number of stablecoin holders is also showing a rapid growth trend, indicating that its popularity on the Base chain is continuously increasing.

Overview of the Base Chain Ecosystem

The Base chain ecosystem is already quite完善, covering multiple areas such as wallets, cross-chain bridges, DeFi, gaming, and payments, with a total of 323 Dapps.

DeFi track

In the DeFi space, projects with a TVL exceeding $200 million include Aerodrome, a certain DEX, and Morpho Blue.

Aerodrome is the first DEX on the Base chain, using the Ve(3,3) model, and promotes the stable development of the ecosystem through an innovative incentive mechanism. Its TVL accounts for more than half of the total on the Base chain.

Morpho Blue is a decentralized lending protocol that introduces a permissionless risk management mechanism, improving the efficiency of the lending market.

Extra Finance provides various financial tools such as leveraged lending and automatic compounding, offering users flexible investment strategies.

Meme Coin track

Meme coin projects frequently appear on the Base chain, such as TYBG and Degen, attracting a large amount of market traffic. Although these projects carry high risks, they have also brought considerable user growth and capital inflow to the Base chain.

SocialFi track

SocialFi projects have brought a large number of new users and funds to the Base chain. friend.tech realizes the monetization of social value by tokenizing user influence. Farcaster, as a decentralized social networking protocol, provides an excellent user experience through innovative storage methods and a plugin system.

Coinbase's AI Innovation

The Based Agents service launched by a trading platform allows users to quickly create AI agents on the Base chain and authorize them for trading and asset management. This innovation greatly enhances the convenience for users to participate in the crypto market.

Virtuals Protocol, as the most popular AI agent product on the Base chain, has established a sustainable economic model for AI development by transforming AI agents into income-generating assets.

Summary

The Base chain, with strong technical support, innovative applications, and a rich variety of ecological projects, has become one of the most promising Layer 2 solutions in the Ethereum ecosystem. Its layout in multiple popular tracks such as DeFi, Meme coins, and SocialFi, as well as its exploration in the integration of AI and blockchain, provides strong support for the development of decentralized finance and Web3. As the ecosystem continues to improve and the user base expands, the Base chain is expected to occupy a more important position in the future blockchain landscape.