Base Chain: A Popular Layer 2 Star Project with a Flourishing Ecosystem

Base chain, as the Ethereum Layer 2 network launched by Coinbase, has developed rapidly since its launch and has become the current number one Layer 2 project in terms of TVL rankings. This article will comprehensively analyze the ecological development of the Base chain from multiple perspectives.

Overview of Base Chain

Base chain is built on the OP Stack of Optimism and is an important part of the Optimism superchain. It uses Optimistic Rollups technology, offering high Ethereum compatibility and computing efficiency. The goal of Base chain is to create a highly integrated chain network that provides users with a seamless experience.

On-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.

On-chain address count

The number of addresses on the Base chain experienced explosive growth 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 the Base chain, and there may have been a certain wealth effect emerging on the chain.

on-chain income

The revenue of the Base chain grew from 19.78 million USD in March to 76.55 million USD in October, totaling an increase of 287%, with an average monthly increase of 41%. This reflects that as users and activities increase, the revenue of the Base chain has maintained rapid growth.

weekly trading volume

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.

On-chain performance

The TPS of Base reached 66.28, performing the best in the Ethereum ecosystem.

Weekly Active Addresses

The number of weekly active users on the Base chain continues to grow, which is an important indicator for assessing the healthy development of public chains.

In summary, the Base chain shows rapid growth in two key dimensions: capital inflow ( TVL, trading volume, chain revenue ), and user growth ( in terms of the number of addresses and activity ), with an average monthly growth rate exceeding 40%. Coupled with its excellent on-chain performance, the Base chain demonstrates strong momentum in the ETH-Layer 2 track.

Circle's Support for Base

Circle fully supports the Base chain, including:

1. Issue USDC natively on the Base chain to simplify user operation processes.

2. Develop the CCTP cross-chain transfer protocol to achieve the native burning and minting of USDC on the Base chain.

3. Coinbase collaborates with Stripe to bring USDC to the Base platform, enabling faster and cheaper cross-border transfers and quick conversions from dollars to cryptocurrencies.

These measures have greatly promoted the application of USDC in the Base ecosystem. As of October 2024, the trading volume of USDC on DEX in the Base chain has exceeded 20 billion USD, making an important contribution to the prosperity of the Base chain ecosystem.

Development Status of Base Chain Ecosystem

The Base chain ecosystem has become quite mature, covering multiple fields such as wallets, cross-chain bridges, DeFi, games, DAOs, infrastructure, social, security, NFTs, and more, with a total of 323 Dapps.

DeFi track

In the DeFi space, major projects with TVL exceeding $200 million include:

1. Aerodrome: The first DEX on the Base chain, using the Ve(3,3) model, with TVL accounting for more than half of the total amount on the Base chain.

2. Morpho Blue: A decentralized lending protocol that introduces innovative designs for permissionless risk management.

3. Extra Finance: Provides leveraged lending and automatic compound leverage yield aggregation services.

Meme Coin Track

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

SocialFi track

SocialFi projects are an important breakout track on the Base chain, with major projects including:

1. Friend.tech: A social value monetization platform based on Twitter accounts.

2. Farcaster: A decentralized social network protocol, its ecological project Warpcast combines traditional social media elements with blockchain features.

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 and grant them cryptocurrency wallets and trading permissions. This innovative service simplifies the digital asset management process and enhances the user experience.

On this basis, Virtuals Protocol has become one of the most popular AI agent products on the Base chain. The project focuses on the creation, deployment, and monetization of AI agents, transforming them into income-generating assets by introducing the Pump.fun model.

Summary

Base chain, as a Layer 2 network launched by Coinbase, has become one of the most promising Layer 2 solutions in the Ethereum ecosystem, thanks to its robust ecosystem, innovative technological applications, and deep cooperation with Circle. Its layout in several popular sectors such as DeFi, Meme coins, and SocialFi, as well as its exploration in the integration of AI and blockchain, provides solid infrastructure support for the development of decentralized finance and Web3. As the ecosystem continues to improve and the user base expands, Base chain is expected to maintain its leading position in the future Layer 2 competition.