• About Us
  • Careers
  • Contact
No Result
View All Result
Saturday, September 27, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Market Analysis
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Market Analysis
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result

What’s Driving the Rapid Growth of Coinbase’s L2, Base?

14 December 2024
in Business, Market Analysis
Reading Time: 6 mins read
107 4
Home Business

Contents

Toggle
  • What’s Driving Base’s Explosive TVL Growth?
    • Low-Cost, High-Speed Transactions
    • Developer-Friendly Ecosystem
    • Shifting Memecoin Market Dynamics
    • Strategic Marketing Campaigns
  • The Impact of Base’s Growth on the Crypto Ecosystem
  • Looking Ahead

Coinbase’s Layer 2 solution, Base, has established itself as one of the fastest-growing among its peers. In just 226 days after its debut, it achieved the remarkable milestone of reaching $1 billion in total value locked (TVL). In 2024, particularly, it has demonstrated incredible growth. 

Base’s TVL, as of January, was about $430 million, but by November 2024, it had soared to over $3.5 billion, a 727.91% growth in less than a year.
Base TVL. Source: DefiLama

This rapid rise has firmly positioned Base first on the list of the top DeFi platforms and sparked curiosity about the driving forces behind its success. The speed at which Base captured market share and gained traction among both users and developers is quite astonishing.

What’s Driving Base’s Explosive TVL Growth?

Base’s success in 2024 can be attributed to several key factors that have fueled its rise in user adoption, transaction activity, and developer engagement.

Active addresses across all Ethereum-based L2 networks. Source: Growthepie

Starting with the obvious, Base’s connection to Coinbase, one of the world’s largest cryptocurrency exchanges, is a major factor driving its success. In addition to lending it credibility and trust, Coinbase’s massive user base of over 100 million people makes it easy to onboard users to the Layer 2 solution. Users can transfer assets directly from Coinbase to Base without relying on third-party services.

Additionally, Coinbase’s experienced development team ensures that Base’s growth is backed by robust technological and operational expertise.

Low-Cost, High-Speed Transactions

However, Base’s appeal lies in its ability to offer near-instant transaction finality at incredibly low costs. With transaction fees as low as $0.01 and processing times under one second, Base has become a preferred solution for users seeking affordability without compromising speed or security.

Although Base faced congestion issues in late 2023, these were largely resolved following Ethereum’s Dencun upgrade in March 2024. This upgrade decoupled gas fees from Ethereum’s mainnet, enabling Base to reduce transaction costs by up to 650 times. The improved scalability allowed Base to handle more transactions concurrently, supporting its exponential growth.

According to Dune Analytics, Base’s daily active users surged after the Dencun upgrade, climbing from below 100,000 to over 200,000. On March 16, 2024, the network reached a peak of 850,000 daily active users, marking a staggering 3,200% increase in daily new users within a short period. 

Base Daily Transaction Growth Since January 2024. Source: Basescan.

Developer-Friendly Ecosystem

Base has emerged as a hub for developers building innovative blockchain products. Its gas efficiency, high speed, and robust security make it particularly appealing for frequent transactions such as trading memecoins, market-making, and deploying Maximal Extractable Value (MEV) bots. For example, Aerodrome, a decentralized exchange (DEX) built on Base, has gained significant attention for its novel liquidity management strategies.

Notably, the platform also provides support in terms of funds and development resources to attract these new projects. 

Shifting Memecoin Market Dynamics

Speaking of memecoin projects, some market analysts predicted in March that the Base would be the next frontier for market activity following Solana’s recent success. For instance, the memecoin BRETT launched in February 2024 and has quickly gained prominence, becoming one of the largest memecoins by market capitalization. 

Memecoins are usually seen as gateways for new users entering the Web3 ecosystem. Base’s intuitive interface, easy-to-use, and low transaction fees have made it the preferred network for trading such assets.

Strategic Marketing Campaigns

The success of Coinbase’s Onchain Summer 2024 event underscored Base’s growing traction. The event ran over the course of 3 months and it showcased innovative use cases and incentivized activity on the network, and thus brought significant attention to Base, attracting both users and developers.

According to the project’s team, over 2 million unique wallets (compared to about 268,000 in 2023) participated in the event, and it resulted in over $5 million in on-chain revenue for builders, creators, and projects. 

The Impact of Base’s Growth on the Crypto Ecosystem

Base’s meteoric rise reflects the growing adoption of Layer 2 solutions as scalable alternatives to Ethereum’s congested and costly mainnet. Here are some of the broader implications.

Base’s growth supports Ethereum’s rollup-centric roadmap by driving the adoption of Layer 2 solutions. The influx of users and liquidity into Base highlights the potential of rollups to address Ethereum’s scalability challenges, inspiring further investment and innovation in blockchain scaling technologies.

While Base’s dominance demonstrates the success of Layer 2 platforms, it also raises concerns about the centralization of liquidity within a few dominant players. This concentration could limit competition and stifle innovation among smaller protocols, potentially reducing the diversity of the blockchain ecosystem.

Rapid TVL growth amplifies the need for robust security measures. High-profile breaches in the DeFi space, such as the $19.3 million exploit of UwU Lend in June 2024, serve as reminders of the risks associated with scaling too quickly. Any vulnerabilities in Base’s infrastructure could have cascading effects across the broader DeFi market.

Looking Ahead

Base’s explosive TVL growth in 2024 highlights the increasing maturity of Layer 2 solutions and their potential to reshape the DeFi landscape. Though it has established itself as a leader in the Layer 2 space, the battle for dominance is far from over. The platform’s success hinges on its ability to sustain innovation while addressing challenges such as security risks, decentralization, and ecosystem diversity.

If Base continues to prioritize user experience, developer engagement, and technological advancements, it could further cement its position as a cornerstone of the crypto ecosystem. However, maintaining this momentum will require careful navigation of the delicate balance between rapid growth and long-term sustainability. 

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence. 

 

If you would like to read more market analyses like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

Take control of your crypto  portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”

Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Share64Tweet40Share11
Previous Post

Best Cryptos to Buy for 2025: Qubetics’ dVPN Security, XRP’s Payment Dominance, and Celestia’s Modular Blockchain Revolution!

Next Post

Years Late to Dogecoin’s ICO Party? Make Up for Lost Time With BTFD Coin’s Crazy Bargain

Olayinka Sodiq

Olayinka Sodiq

Olayinka Sodiq is a seasoned crypto and blockchain writer with over 5 years experience in the fintech industry. With a deep passion for decentralized technology, Olayinka crafts insightful and engaging content that demystifies complex blockchain concepts for a global audience. His work has been featured in leading publications (Business Insider Africa, Tradingbeasts.com, and The Trading Bible), where he is known for blending technical expertise with a clear, accessible writing style. Olayinka holds a degree in English and is a sought-after speaker at blockchain conferences worldwide

Related Posts

Network Tokens on the Edge: Commodities vs Securities and the SEC’s Next Big Move
Market Analysis

Network Tokens on the Edge: Commodities vs Securities and the SEC’s Next Big Move

25 September 2025
source: businesspost.ng
Stablecoins

Tether Eyes $20B Fundraise at $500B Valuation

24 September 2025
Do Tokenized Stocks Confuse Investors? Risks You Should Know
Crypto

Do Tokenized Stocks Confuse Investors? Risks You Should Know

20 September 2025
Can Europe’s Stablecoin Ambitions Withstand Pressure From the US and China?
Stablecoins

Can Europe’s Stablecoin Ambitions Withstand Pressure From the US and China?

19 September 2025

Editors Picks

Mining vs. Staking: Which Crypto Validation Method Will Shape the Future?

Mining vs. Staking: Which Crypto Validation Method Will Shape the Future?

byOlajumoke Oyaleke
15 July 2025
0

Where Are the Ethereum-Killers Now?

Where Are the Ethereum-Killers Now?

byOlayinka Sodiqand1 others
6 January 2025
0

source: investorplace.com

How to Find the Newest Cryptocurrencies Before They’re Listed

byOlayinka Sodiq
30 December 2024
0

Exploring the Role of AI in Enhancing DeFi Security

Exploring the Role of AI in Enhancing DeFi Security

byOlayinka Sodiq
1 October 2024
0

The Ultimate Guide to How NFT Royalties Work

The Ultimate Guide to How NFT Royalties Work

byAdedamola Ojedokun
17 April 2024
0

Read More

Chain of Thoughts

The Aesthetics of Web3: Why Vibe Matters in Decentralized Communities

The Aesthetics of Web3: Why Vibe Matters in Decentralized Communities

byOlu Omoyele
27 September 2025
0

...

Zero-Knowledge Everything: Trust, Privacy, and Verification in the Digital Age

Zero-Knowledge Everything: Trust, Privacy, and Verification in the Digital Age

byOlu Omoyele
30 August 2025
0

...

What Happens When AI Gets a Wallet?

What Happens When AI Gets a Wallet?

byOlu Omoyele
31 July 2025
0

...

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

byOlu Omoyele
30 June 2025
0

...

Markets Update

Network Tokens on the Edge: Commodities vs Securities and the SEC’s Next Big Move

2 days ago

Tether Eyes $20B Fundraise at $500B Valuation

3 days ago

Do Tokenized Stocks Confuse Investors? Risks You Should Know

7 days ago

Can Europe’s Stablecoin Ambitions Withstand Pressure From the US and China?

1 week ago

Your Weekend Crypto Roundup | September 2025 (Week 3)

1 week ago

Crypto, Privacy, and Judicial Authority in the United States

1 week ago
Read More

Events

Blockchain Life 2025
Blockchain Life 2025
28 Oct 25

Spotlight

All about Ethereum
All about Algorand
All about Bitcoin
All about Gora

Press Releases

Pepeto Highlights $6.8M Presale Amid Ethereum’s Price Moves and Opportunities

bychainwire
26 September 2025
0

LYS Labs Moves Beyond Data and Aims to Become the Operating System for Automated Global Finance

bychainwire
26 September 2025
0

Dexari Unveils $1M Cash Prize Trading Competition

bychainwire
26 September 2025
0

KuCoin Appeals FINTRAC Decision, Reaffirms Commitment to Compliance

bychainwire
25 September 2025
0

Phemex Revamps Blog to Deliver Deeper Insights and Enhanced Reader Experience

bychainwire
25 September 2025
0

Read More

ADVERTISING

ABOUT

TEAM

CAREERS

CONTACT

TERMS & CONDITIONS

PRIVACY POLICY

© Copyright 2025 DeFi Planet

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Please enter and activate your license key for Cryptocurrency Widgets PRO plugin for unrestricted and full access of all premium features.

Add New Playlist

No Result
View All Result
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Market Analysis
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer

© Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00