In recent weeks, the Base network has made significant strides in the competitive crypto market, demonstrating notable growth in its total value locked (TVL). According to data from L2Beat, the TVL of Base surged over 5% within the past week, surpassing the $10 billion mark for the first time. This achievement is particularly impressive given the network’s recent struggles, having dipped below $6 billion in TVL just two months prior. The resurgence, driven primarily by Aerodome Finance’s robust performance, underlines the increasing dominance of meme coins in trading activities. This upward trajectory has propelled Base to the position of the second-largest Ethereum Layer 2 network in terms of TVL, just after Arbitrum.
Adding to the excitement, Base recently shattered its previous record by achieving a transaction speed of 106.26 transactions per second (TPS). This remarkable feat exemplifies the network’s capacity to handle high volumes of transactions efficiently. Concurrently, Base surpassed 9 million on-chain transactions, a testament to its growing adoption. Furthermore, the weekly active address count has climbed close to 6.6 million, reflecting heightened user engagement and interest in the platform. This growth serves not only as an indicator of user activity but also of the potential for further development within the ecosystem, signaling a robust environment for decentralized applications and financial services.
Amid this impressive growth narrative, Base has encountered challenges, particularly in the realm of stablecoins. Initially, the network carved out a strong position, attaining a share of over 30% in stablecoin volume on October 26, surpassing more established networks like Solana and Ethereum. However, the reversals observed in the following weeks paint a different picture. By November 23, Base had slipped to the third-largest blockchain for stablecoin volume, trailing behind Solana and Ethereum, despite the bullish market conditions. This downturn in stablecoin supply coincided with broader trends in the crypto space post-election, indicating fluctuations in user confidence and demand.
Comparative Insights: Base vs. Competitors
While Base has experienced significant fluctuations in its stablecoin market presence, competitors such as Arbitrum have shown resilience, recording a 19% increase in total stablecoins on their network since November 5. In contrast, both Base and Optimism experienced declines in their respective stablecoin supplies. This juxtaposition raises pertinent questions about the sustainability of growth within the Base network and its ability to maintain momentum amidst ever-changing market dynamics.
As Base continues to evolve, stakeholders and investors alike will be keen to monitor its trajectory—balancing the excitement of rapid growth against the backdrop of fluctuation in stablecoin adoption. The coming weeks will likely provide further insights into whether Base can stabilize its gains and leverage its recent milestones into long-term success.
Leave a Reply