Coinbase-backed Layer-2 network Base has surpassed a total value locked (TVL) of $2 billion with a 43.61% increase last week. This milestone reflects the growing interest in the network, particularly focused on memecoin projects and airdrop events. Designed on the Optimism rollup solution, Base maintains Ethereum‘s robust security while increasing transaction speed and reducing costs, playing a significant role in scaling Ethereum.
Intense Interest in Base Network
Coinbase, a giant cryptocurrency exchange valued at over $60 billion, is responsible for 90% of spot Bitcoin exchange-traded funds in the US, and its strategic position and alliances with giants like Blackrock and Circle significantly contribute to Base’s momentum. Indeed, Jesse Pollak, the architect behind Base, emphasized that a significant portion of Coinbase’s revenue is being channeled into the development of Base:
“We are increasing founder grants to allow creators to start building for free and to create experiences without transaction fees, and to reward and provide resources to those who have a positive impact on Base to build the next thing.”
This strategic move reflects Coinbase’s vision of leveraging Base as a gateway to the crypto market for its more than 110 million users. The platform’s integration with Coinbase’s extensive user base provides an efficient foundation for user acquisition, a common challenge for new blockchain networks.
Therefore, this strategy has led to an unprecedented increase in the adoption of Base. In March, the daily number of new users rose to 800,000, revenue from $18 million to $28 million, and daily transactions from 500,000 to 2 million.
Base Network and the Dencun Update
This increase is partly attributed to the Ethereum Dencun upgrade. The implementation of EIP-4844 has significantly reduced network fees, making Base a challenging competitor for high-frequency trading processes. The momentum around Base indicates a growing interest in memecoin projects and airdrop events. As the ecosystem is still in its infancy, the potential for discovery and investment in memecoin projects is attracting attention.
According to analyst Miles Deutscher, a methodical approach that includes monitoring token transaction volumes and ownership numbers can reveal promising opportunities in this area. For instance, Toshi Base stands out as a memecoin project with a strong community and the advantage of being an early mover. Deutscher made the following statement:
“Those who follow my content know that I advocate following the leader when it comes to narrative trade, in this case, TOSHI is the leading memecoin project on the Base network.”
