In the constantly evolving crypto landscape, the Base network has witnessed a remarkable resurgence, characterized by significant developments in its total value locked (TVL) and transaction capabilities. With recent data highlighting a 5% increase in TVL, surpassing the $10 billion mark, Base’s growth trajectory stands out amidst heightened market activity. This article delves into the factors contributing to this momentum and examines the implications for the broader blockchain ecosystem.
The past week has marked an exceptional phase for the Base network, which has reported a TVL exceeding $10 billion for the first time. This milestone propels Base into the spotlight as the second Ethereum Layer 2 network to reach this significant threshold, following closely behind Arbitrum. The surge can be attributed largely to Aerodome Finance, demonstrating the increasing dominance of meme coin trading. Notably, there has been a striking rebound from September’s dip below $6 billion, showcasing an overall growth of over 67% in TVL.
Alongside an impressive TVL, Base has also achieved a record transaction speed, registering 106.26 transactions per second (TPS). Such efficiency is crucial for attracting various user segments, and this increase has coincided with a notable uptick in on-chain transactions, which have crossed the 9 million mark. Furthermore, the number of weekly active addresses on Base has approached 6.6 million, underscoring a trend of enhanced user engagement and increasing adoption of the network. These metrics suggest that Base is not just experiencing a momentary spike but is establishing itself as a viable contender in the Layer 2 arena.
The rapid growth of Base has also had implications for the stablecoin market, which tends to thrive during periods of increased blockchain activity. On October 26, Base claimed the title of leading blockchain for stablecoin volume, capturing over 30% of the market share, outpacing industry heavyweights like Solana and Ethereum. However, this trend took a downturn in the following month, as the stablecoin supply within Base’s ecosystem underwent a notable decline. According to recent Artemis Terminal data, Base has fallen to third place in stablecoin volume, trailing behind Solana and Ethereum.
Post-Election Trends and Future Outlook
Intriguingly, the observed shift in stablecoin dynamics corresponds with recent political developments. Post-election shifts led to contrasting performances among Layer 2 networks, with Arbitrum observing a 19% increase in total stablecoin holdings, while Base and Optimism faced respective declines of 6.6% and 1% since November 5. These insights reveal complex market interactions influenced by broader socio-political contexts, hinting at the multifaceted nature of the crypto market.
The Base network has made significant strides in recent weeks, achieving notable milestones in TVL, transaction speed, and user engagement. However, fluctuations in the stablecoin market serve as a reminder of the volatile nature of the crypto landscape. As Base continues its journey, its ability to maintain momentum amid external pressures will be critical to its long-term success in the evolving world of decentralized finance.