Inside Coinbase's Base: How It Dominated the Layer 2 Landscape in Just One Year
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The Base chain has been on a tear, becoming the go-to Layer 2 solution in just a year. This lightning-fast rise underscores the hefty demand for scalable and affordable alternatives within the Ethereum ecosystem. The Base layer 2 network has swiftly claimed its spot at the top, fueled by innovation and a surge in user adoption, and it's setting a new benchmark for performance.
So, how did it manage to pull off this feat in such a short time? Let's dig in and find out.
The Journey of Coinbase’s Base: From Launch to #1 Layer 2
When Base chain went live in August 2023, it was like a rocket ship blasting off. With Coinbase's reputation and resources behind it, users swarmed to the new network in droves. But what really set Base apart wasn't just the big-name backing; it was the rapid expansion of its ecosystem.
DeFi, Partnerships, and the Meme Revolution
Base attracted the usual suspects in the DeFi world while also becoming a hotbed for memecoins. Yes, you read that right – memecoins. Those quirky, often humorous tokens that can go from zero to hero in a heartbeat. Coins like BRETT, DEGEN, TOSHI, KEYCAT, TYBG, MIGGLES, Mog, and SPX6900 all found a home on Base, bringing with them a tidal wave of users and transactions.
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Outperforming the Competition
Fast forward to October 2024, and Base has done the unthinkable – it's surpassed Arbitrum, the long-time king of Layer 2 networks. Here are the numbers that tell the story:
- Total Value Locked (TVL): Base stands at $2.49 billion, while Arbitrum trails behind at $2.35 billion.
- Daily Transactions: From October 10 to 15, Base layer 2 processed approximately 6 million transactions daily, peaking at 6.2 million on October 10. That's a significant lead over Arbitrum's 5.1 million and Optimism's ~1 million.
Base now represents 60% of all L2 transactions, according to data from IntoTheBlock. This surge in activity has cemented Base's position as the top Layer 2 network, and it's showing no signs of slowing down.
What Made Base the Leading Layer 2 Chain?
So, what's behind the Base chain's meteoric rise to the top of the Layer 2 ecosystem? Let's break it down.
1. The Coinbase Connection
First off, having Coinbase as its big brother has been a game-changer for the Base chain. With over 8 million monthly active users, Coinbase provided a ready-made audience and seamless onboarding. This affiliation was like a golden ticket for projects building on Base, giving them instant visibility and trust.
2. Technological Magic
Base is powered by Optimism's OP Stack, which is like the secret sauce that makes everything faster and cheaper without sacrificing that precious Ethereum-level security. It's fully compatible with the Ethereum Virtual Machine (EVM), making it a breeze for developers to deploy their dApps.
And let's not forget the introduction of cbBTC (Coinbase Wrapped Bitcoin), which brought Bitcoin into the mix, expanding DeFi opportunities on both Ethereum and Base. Not sure what Coinbase Wrapped Bitcoin is? Read our cbBTC guide to know how to start.
3. DeFi Gold Rush
The Base ecosystem has become a hotbed for high-yield DeFi platforms like Aerodrome (AERO), offering returns so juicy they've attracted a flood of users. These platforms have turned Base into a hub for DeFi innovation and user engagement, making it the place to be for liquidity providers looking to make some serious gains.
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4. The Memecoin Frenzy
Memecoins have been a wild card in Base's success story. We've seen chains like Solana ride similar waves, and Base has become a new memecoin capital this cycle. It's clear that this mania is driving user acquisition, retention, and transaction growth. In an age where memecoin enthusiasm is all the rage, and theories like Murad's Memecoin Supercycle are gaining traction, the Base chain is poised for even more explosive growth.
5. Building a Strong Community
Base hasn't just relied on tech and memecoins; it's also been hard at work building a robust community. They've hosted events like Onchain Summer, which have engaged and incentivized both developers and users. Here are some of the cool initiatives they've rolled out:
- Dynamic Bounties: Up to $5K for projects built on Base with Dynamic.
- Onchain Buildathon: A month-long hackathon with 200 ETH in rewards.
- Builder Grants: Up to 5 ETH for early-stage projects.
- Round Grants: Weekly 2 ETH rewards via Farcaster.
- Gas Credits: Gasless experiences provided by Coinbase's Developer Platform.
- Optimism Retro Funding: Additional funding opportunities through the OP stack.
These community-building efforts have been instrumental in fostering a vibrant Base ecosystem, where developers and users feel valued and supported. So, there you have it – the Base chain's secret to success is a mix of strong backing, cutting-edge tech, lucrative DeFi opportunities, memecoin madness, and a whole lot of community love.
FAQs: Base Chain
What is the Base chain?
The Base chain is a Layer 2 blockchain network built on Ethereum, designed to offer scalable and low-cost solutions for decentralized applications (dApps). Backed by Coinbase, it leverages Optimism's OP Stack to provide fast transactions and enhance the Ethereum ecosystem. The Base chain has gained rapid adoption due to its strong performance and innovative features.
How to use Base chain?
Using Base chain is simple with a compatible wallet like MetaMask or Coinbase Wallet:
- Open your wallet’s browser extension and log in.
- Connect your wallet to a decentralized app (dApp).
- Open the network selection menu by clicking the network icon.
- Select “Base” from the options, and you're connected to the Base Layer 2.
Who owns Base blockchain?
The Base blockchain was created and is operated by Coinbase, a leading cryptocurrency exchange. While Coinbase plays a key role in its development, the Base chain itself is decentralized and aims to grow as a community-driven project within the Ethereum ecosystem.
How to buy Base chain crypto?
To buy crypto on the Base chain, follow these steps:
- Log in to a supported exchange.
- Deposit funds into your account.
- Search for the Base ecosystem token or compatible cryptos.
- Complete the purchase and transfer it to your Base chain-compatible wallet.
Conclusion
Base's rapid rise, fueled by Coinbase's support and innovative DeFi solutions, has solidified its position as the leading Layer 2 network. As it continues to grow, now is the perfect time to get involved with Base. Explore its ecosystem and seize early opportunities for growth!
