Coinbase continues to gain a significant advantage for its cryptocurrency platform with Base, a low-cost solution developed to accelerate scaling efforts and make transactions faster. Coinbase’s first-quarter earnings report shows that Base is an important part of the exchange’s steps towards becoming a decentralized financial powerhouse in the DeFi space.
TVL Increases by $104 Million in Four Days
According to DefiLlama’s data, from May 1 to May 4, the Total Value Locked (TVL) increased by $104 million, rising from $1.379 billion to $1.483 billion. This increase in TVL indicates that more assets are being deposited and locked into the relevant DeFi protocol. This situation not only shows an increase in user participation and trust in the platform but may also indicate an increase in liquidity and transaction volume within the protocol, potentially providing higher returns for users and a stronger overall ecosystem.
Coinbase’s first-quarter earnings report, published on May 2, shows that the Base platform has significant potential and is progressing towards becoming a stronger hub in the DeFi space. According to the first-quarter report, the volume on Base significantly increased, surpassing similar platforms like Optimism (OP) and Arbitrum (ARB).
The success of Base appears to be greatly influenced by the rollout of Ethereum’s Dencun upgrade. With this upgrade, Base consistently processed over 3 million transactions per day, significantly increasing fee revenue. The first-quarter report shows that the daily transaction volumes of DeFi crypto exchanges on Base exceeded $1 billion. However, it seems that Coinbase’s main centralized exchange transaction volumes have not yet been reached.
Data Benefits Coinbase
The increase in revenues on the Base platform is linked to its support for over 250 protocols, thereby strengthening significant DeFi protocols. With the launch of Base, Coinbase aimed to create a decentralized ecosystem and provide an accessible, global crypto ecosystem benefiting from the security of the Ethereum mainnet.
Delving into the details, it stands out that Coinbase generated $1.6 billion in revenue in the first quarter of 2024, exceeding expectations by 20%. This figure is significantly higher compared to the $736 million recorded in the same period of the previous year. Transaction revenues from both institutional and individual customers rose to $1.08 billion.
The continued success of the Base platform seems to be taking Coinbase one step closer to becoming the “NVIDIA” of the DeFi space. Base is indicated as a major growth factor. Coinbase Coin’s stock price has increased by 2.16% in the last 24 hours, trading at $223.25.
