Coinbase’s Base Network Shatters Records But is it a Flash in the Pan?

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Coinbase’s Layer 2 network, Base, has reshaped industry benchmarks in a short span. On September 14, this promising network reported an astounding 1.88 million transactions. This volume surpasses even seasoned rivals such as Arbitrum and Optimism.

Why Base’s Ascent Is Noteworthy 

Introduced two months ago, Base’s skyrocketing prominence can’t be overlooked. Coinbase’s substantial clout and the mounting popularity of decentralized applications (dApps), notably, are critical to its success.

While the transaction figures from September 14 were groundbreaking, other metrics echo Base’s flourishing state. The network proudly claims an average of 888,000 active addresses daily, making up 60% of all users on the Optimism roll-up.

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The thriving activity on Base is mirrored by its swelling Total Value Locked (TVL). Currently, Base’s TVL is a striking $386 million. That positions it fourth among leading Layer 2 protocols, as reflected in L2beats’ statistics.

The network’s efficiency is evident. It now registers a remarkable 19.57 transactions per second. Over the past four weeks alone, Base has recorded an impressive 20.5 million transactions.

DApps & L2 A Successful Alliance

Since its inception, Base has been a preferred choice for myriad decentralized protocols. The adoption of numerous notable dApps reinforces this preference. Nevertheless, it’s the flagship social app, Friend.Tech, that remains the cornerstone of Base’s bustling activity.

Friend.Tech stands out as a pioneering platform, allowing seamless integration of Twitter accounts with FT profiles. This innovation ushers in a new era of social media monetization. Here, users can generate distinctive keys for trading, whether buying or selling.

Initial figures were promising: Friend.Tech drew over 100,000 users, amassing over $200 million in inflows and over $10 million in fees. Yet, it has recently faced challenges, witnessing a dip as initial excitement diminishes.

Concerns Within the Base Ecosystem

It’s crucial to note that Base, like many networks, isn’t free from risks. A growing number of potential rug pulls, and dubious tokens loom large. This presents an ongoing challenge for users and investors alike, emphasizing the need for caution and due diligence.

While Base’s accomplishments are commendable, it remains imperative for users to navigate its ecosystem with vigilance. The balance between innovation and caution will determine its lasting impact on the industry.

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