Base Blockchain Thrives Amid Crypto Winter
Base Blockchain, the layer-2 network launched by Coinbase in 2023, is defying the odds and flourishing despite the ongoing ‘crypto winter’.
Data from Nansen indicates that Base Blockchain is outperforming other prominent blockchains such as Avalanche (AVAX), Polygon (POL), and Cronos (CRO) in terms of user growth.
The network has witnessed a surge in the number of active addresses, reaching a record high of over 1.964 million, a significant increase from the year-to-date low of 196,000.
Furthermore, the number of transactions processed by Base Blockchain has surged to 4.8 million, a significant rise from the low of less than 300,000 in January.
The network has also experienced a record number of daily deployments, reaching close to 18,000 earlier this month.
On the other hand, Avalanche has witnessed a decline of over 50% in both active addresses and transactions, highlighting Base Blockchain’s growing popularity among developers due to its fast speeds and low transaction costs.
According to DeFi Llama, Base Blockchain boasts 348 dApps in the decentralized finance sector and a total value locked of $1.57 billion, positioning it as the sixth-largest chain in the industry. Key DeFi dApps within its ecosystem include Aerodrome, Uniswap, Extra Finance, AAVE, and Morpho Blue.
Base Blockchain also ranks sixth in terms of stablecoins within the ecosystem, with a value of over $1.57 billion. Its inclusion in Tether’s network is expected to further expand its stablecoin offerings.
Notably, Base Blockchain has emerged as the third-largest chain in the decentralized exchange sector, with its dApps facilitating a trading volume of $3 billion in the past week, surpassing competitors like Arbitrum.
One of the key attractions of Base Blockchain for developers and users is its low gas fees. Despite a surge in transactions, the network has seen a significant reduction in gas fees, dropping to $50,425 from over $2.3 million in March. In contrast, Ethereum and Tron have generated over $1 billion in fees this year, highlighting Base’s cost-effectiveness.
Base Blockchain’s performance is a positive development for Coinbase, which faces stiff competition from platforms like Crypto.com, Huobi, and Bybit. While Coinbase recorded a crypto volume of $66 billion, its rivals surpassed $70 billion in trading volume.