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Today, we’re diving into Base, the Ethereum Layer 2 that’s having a big moment right now.
In case you haven’t noticed, Base has become one of the most active blockchains in the industry, with no signs of slowing down.
It recently ranked as the #1 of all L2s for daily transactions, almost doubling 2nd place! 🤯
Its success over the last few weeks is gaining attention and we believe that Base will continue to dominate and soon become the #1 L2 across ALL relevant metrics.
However, there is one thing about Base that is different from almost every other L2 or blockchain out there. It doesn’t have a token.
Base is having so much success, yet, we can’t capitalize on the opportunity because $BASE doesn’t exist and according to Coinbase, will never exist (...though we don’t really believe that 👀).
Rarely do we see something in crypto gain considerable adoption without some sort of token incentive to fuel the fire.
But just because Base doesn’t have a token, it doesn’t mean there isn’t plenty of opportunity to capitalize on the Base adoption and hype.
In today’s report, we are going to make a case for why Base is going to quickly become the #1 L2 in crypto, continue to be one of the biggest narratives in the space AND of course, explore how you can capitalize on the opportunity.
At the end of this report we will share 5 ways to capture the upside of Base.
Let’s start by looking at where Base stands currently in the L2 race.
BASE VERSUS THE L2 ECOSYSTEM ⚔️
Base now holds the 3rd position in total value locked (TVL), trailing only behind Arbitrum and Optimism. Notably, both competitors had nearly a two-year head start over Base and have used their native tokens to enhance their chain's value.
However, the key point to underscore is Base's remarkable growth of 239% in the past 30 days alone, significantly outpacing most other Layer 2 solutions.
In terms of active addresses, Base has just overtaken Arbiturm for the #1 spot, with more than 360k daily active addresses, a 269% increase in the last 30 days.
Interestingly, when we look at new versus recurring users, we see that over 50% of the active addresses on Base in March were from first-time users—very impressive!
As shown above, Base has recently jumped to #1 for daily transactions. Its growth in the last few weeks is shown below, reaching more than 3 million transactions per day, and over 173 million since its inception.
Looking at DEX (decentralized exchange) trading volume, Base has recently climbed into 2nd, and should be hitting #1 within the month of April.
When it comes to stablecoin market cap, Base recently jumped to 2nd overall, with a 548% increase over the last 30 days.
It’s very clear that Base is in the middle of an extraordinary growth period, one which we believe has no reason to cool off any time soon.
It’s very likely that most of these metrics will be 2-5x bigger in the next few months.
More on why we believe this in just a second, before doing so, let’s talk about the $$$ side of Base thus far.
BASE GAS FEES AND REVENUE 🤑
This boost of activity on Base was ignited after the recent EIP 4844 upgrade to Ethereum on March 14th, which significantly reduced the data availability costs to Ethereum Layer 2s.
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