Crypto News

TVL Core Network Surpasses 3 Billion, With Daily Users Topping 5 Million

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The layer 2 Ethereum network, Base, has seen a remarkable increase in locked assets, climbing around 200% over the past month to over $3 billion, according to data from L2beat.

Key Contributor Jesse Pollak disclosed this base reached the $3 billion mark five days after crossing the $2 billion threshold. Notably, the network took 203 days to reach its first billion and only 23 days to reach $2 billion.

Additionally, on-chain data shows that increasing TVL corresponds to an ever-expanding user base. According to the Dune analytics dashboard curated by Watermeloncrypto, Base’s daily active users surpassed 5 million this week, with the network’s total revenue already surpassing $36 million.

Basic TVL
Basic TVL (Source: L2Beat)

Therefore, industry experts predict that Base’s growth will catalyze the entry of more companies into on-chain development. Ryan Watkins, the founder of Syncracy Capital, said:

“Imagine when Wall Street realizes that Coinbase generates over $500 million in annual revenue from a cumulative Ethereum. The foundation can be the ultimate catalyst that will allow businesses to scale on-chain.

Why core metrics are increasing

The exponential growth of the network can be attributed to various factors, including the notable rise in coin activities and the advent of innovative products.

There has been a notable increase in memecoin traction on Base recently. As a result, Base has experienced increased liquidity and more favorable market sentiment, with industry analysts speculating that the assets could spearhead the next phase of adoption.

Notably, CryptoSlate reported that Base’s memecoin proliferation briefly caused its network fees to rise above those of rival Layer 2 networks despite the introduction of the Dencun upgrade. To manage this increase, the network adjusted its gas pricing target to 3.75 mgas/s, which gave it 50% more capacity.

Additionally, Base has seen an increase in crypto developers creating new products on top of the Layer 2 solution, driving adoption and usage.

For context, Base recently welcomed one of the pioneering Layer 3 networks, Degen, to its ecosystem on March 28. said:

“L3s are application chains that enable lightning-fast transactions because they sit on top of L2s as Base instead of connecting directly to Ethereum. A new blockchain Internet requires new models of scalability, and L3s are using the power of L2s in new ways.

Andrew Forte, Director of Business Development at Dappd, also Underlines Coinbase’s recent efforts to develop a native smart wallet that does not need seed phrases or private keys for the Layer 2 solution. According to him, this wallet could help attract Coinbase’s large user base to Base.

Coinbase plans to incentivize developers to contribute to the network through grants, allowing them to build freely and rewarding those who have a positive impact on the ecosystem.

Pollak added:

“Gas subsidies will be immediate and can be extended. Subsidies to builders will primarily be retroactive as we have observed that this creates aligned incentives and a strong builder culture.

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