Source: Coinbase

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In a groundbreaking move, Coinbase, the renowned cryptocurrency exchange, has launched its own decentralised blockchain known as Base. The network, which had previously undergone testing phases, was unveiled to the public during the “Onchain Summer” event. 

With the official release of Base, the cryptocurrency community has witnessed a surge in activity, impressive user adoption rates, and a notable increase in total value locked (TVL). Let’s delve into the key highlights of this remarkable development.

User Adoption and Activity

Shortly after its official launch on August 9, the Base network witnessed an impressive surge in active users, crossing the remarkable threshold of 100,000 users daily. 

Dune Analytics figures from August 10 revealed an astonishing 136,000 daily users, representing a significant milestone for the network’s short history. Notably, approximately 30% of these users were newcomers to Base, signifying the network’s ability to attract a diverse user base.

Duna-Base-Protocol-daily-user

Source: Daily active users on Base. Source: Dune

Growing Ecosystem and Use Cases

The Base ecosystem has rapidly expanded since its inception. With more than 100 decentralised applications (dApps) and service providers available, users have many options to explore. 

These applications span various domains, including decentralised finance (DeFi) protocols, cross-chain bridges, wallets, oracles, and analytics providers. Such an expansive ecosystem provides users the tools to engage in various blockchain activities, from swapping tokens and providing liquidity to making payments and participating in decentralised autonomous organisations (DAOs).

Enhanced Performance and Functionality

Base prides itself on delivering enhanced performance compared to traditional layer-1 blockchains. With lower transaction fees and improved transaction speeds, the network provides users with a more efficient and cost-effective platform for their blockchain activities.

While Base’s current transaction throughput is around 5.8 transactions per second, its foundation on the Optimism OP stack promises significantly higher throughput in the future.

Total Value Locked and Market Share

The Base network has not only garnered attention for its user adoption but also its remarkable growth in terms of total value locked (TVL). Over just one week, the network’s TVL surged by an impressive 72%, reaching $147 million in collateral. 

base-protocol-TVL-graph

Base TVL 1 week. Source: L2beat

This growth places Base in fifth position within the layer-2 ecosystem, ahead of established protocols such as Starknet and Loopring. 

While its market share currently stands at 1.4%, the network’s rapid expansion suggests a promising trajectory for Coinbase’s venture into the decentralised blockchain space.

Challenges and Criticisms

Despite its success, Base has not been without challenges. Some critics have questioned the degree of decentralisation within the network, citing concerns about the level of control exercised by centralised entities like Coinbase.

DeFi decentralisation advocates Chris Blec has expressed reservations about projects like Base, emphasising the importance of true decentralisation and permissionlessness in the cryptocurrency space. 

Final thought

Coinbase’s launch of the Base network marks a significant milestone in the evolution of decentralised blockchains. With an impressive surge in user adoption, a rapidly growing ecosystem of applications, and a notable increase in total value locked, the network has quickly asserted its presence in the layer-2 ecosystem. 

As the network continues to mature and address challenges, it holds the potential to become a formidable player in the decentralised finance and blockchain space, ushering in new possibilities for users and developers alike.