Base Chain: A Comprehensive Analysis of the Ecosystem of Star Layer 2 Projects

Base is the Ethereum Layer 2 network launched by Coinbase, built on the Optimism OP Stack. Since its launch, Base has rapidly developed, performing excellently on multiple key metrics, surpassing several established Layer 2 projects.

Overview of Base Chain

Base chain is a Layer 2 solution based on the OP Stack, utilizing Optimistic Rollups technology. Its goal is to become part of the Optimism superchain and promote Ethereum scalability. Base chain has advantages in performance and compatibility, providing a good migration environment for dApps.

Base has joined the OP Stack and Superchain development as the second core development team, working alongside OP Labs and others to enhance the Superchain ecosystem. Base aims to create a highly integrated chain network to provide users with a seamless experience and promote the development of the developer ecosystem.

On-chain Data Analysis

TVL

The TVL of the Base chain has significantly increased after September, rising from $1.419 billion to $2.388 billion, a growth of 68.28%. Among all ETH Layer 2s, Base ranks first in TVL growth, demonstrating its rapid development trend.

On-chain address count

The number of on-chain addresses on Base rapidly increased after August, rising from 24.55 million to 74.88 million, a growth of 205.01%. This indicates that users are optimistic about the development prospects of Base, and there may be a wealth creation effect on the chain, attracting more users to participate.

on-chain income

Base chain revenue increased from 19.78 million USD in March to 76.55 million USD in October, a total increase of 287%, with an average monthly growth of 41%. As users and activities increase, Base revenue maintains rapid growth.

weekly trading volume

The weekly trading volume of 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, surpassing other chains, making it the best performing in the Ethereum ecosystem.

Weekly Active Addresses

The number of active users on the Base chain continues to grow, indicating a healthy development of the ecosystem.

In summary, the Base ecosystem is showing a vigorous development trend. In terms of the two key factors of capital and flow, Base performs best among ETH Layer 2. TVL, transaction volume, and on-chain revenue are growing rapidly, with a monthly growth rate exceeding 40%. The number of users and activity continues to rise, coupled with excellent on-chain performance, laying a foundation for Base's development in the Layer 2 track.

Support for USDC on Base

Circle officially announced support for the Base chain, issuing native USDC on Base. This simplifies the operational process and improves efficiency. Circle accounts and APIs fully support USDC on Base, facilitating fund access.

Coinbase collaborates with Stripe to bring USDC to the Base platform, enabling faster and cheaper cross-border transfers and conversions from US dollars to cryptocurrencies. The main aspects of the collaboration include:

• Stripe adds USDC to its crypto payment products.
• Add USDC as a fiat currency to the cryptocurrency gateway on Base
• Coinbase Wallet integrates Stripe for fiat purchases of cryptocurrencies.

These collaborations have promoted the application of USDC in the Base ecosystem. As of October 2024, the trading volume of USDC on DEXs on the Base chain has exceeded $20 billion. The number of holders of USDC on the Base chain is also continuously increasing, showing that its popularity is on the rise.

Overview of the Base Chain Ecosystem

The Base chain ecosystem is very comprehensive, including multiple sectors such as Wallet, Bridge, DeFi, Gaming, Onramp, DAO, Infra, Social, Security, NFT, etc., with a total of 323 Dapps.

DeFi track

Main Projects:

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

2. Morpho Blue: A decentralized lending protocol that provides permissionless risk management and market creation mechanisms.

3. Extra Finance: A lending and automatic compounding leverage yield aggregation protocol based on Optimism.

Meme Coin Track

Meme coin projects like TYBG, Degen, and Brett frequently appear on Base, attracting a large amount of traffic in a short period. These projects demonstrate significant influence but also come with high risks.

SocialFi track

1. friend.tech: A decentralized social platform based on Base that allows users to monetize social value by purchasing the keys of Twitter users.

2. Farcaster: A decentralized social network protocol that uses hybrid storage technology and Frames plugins to provide a smooth user experience. Its ecosystem project Warpcast combines elements of traditional social media with blockchain characteristics.

Coinbase's Innovation on the Base Chain

Coinbase has launched the Based Agents service, allowing users to quickly create AI agents on the Base chain and authorize them for trading and asset management. The Virtuals Protocol is the most popular AI agent product on Base, focusing on the creation, deployment, and monetization of AI agents.

Summary

Base, as the Layer 2 network launched by Coinbase, has developed rapidly since its launch. It performs excellently in indicators such as TVL, user growth, and trading volume, covering multiple popular sectors within its ecosystem. The collaboration with Circle has enhanced user experience and payment efficiency. Base is also actively exploring the integration of AI with blockchain. With the support of Coinbase, innovative technology applications, and a rich ecosystem of projects, Base has become one of the most promising Layer 2 solutions in the Ethereum ecosystem, providing strong infrastructure support for decentralized finance and Web3 development.