In the ever-evolving world of blockchain technology, COINBASE has taken a forward leap by incubating Base, a Layer-2 blockchain built on the OP Stack. Designed to bring forth better scalability and efficiency, Base is a prominent outcome of the nexus between innovation and necessity.
Data updated on: Aug 21, 2023
Key Takeaways
- Base peaked at 77,294 UAW after its public launch and maintains an average of 46,491 daily UAW, surpassing Optimism with an average of 45,628 dUAW.
- In the past 7 days Friend.tech became the leading dapp on Base, generating $3 million in fees from exclusive chat access, netting the platform $1.5 million in ETH.
- Base’s NFT trading volume stands at $557,347 from 54,523 sales. The Ttiny Based Frogs collection dominates with 37% of the platform’s NFT trading volume.
- So far, the “Onchain Summer” campaign generated $2.6 million in revenue.
- In its first two weeks Base processed 12.8 million transactions and bridged $254 million from Ethereum or other chains to Base.
- In a comparable two-week span, Arbitrum spent 805 ETH ($1.32 million) on gas fees, while Base used 1,250 ETH ($2.08 million).
- Introduction to Base
- Leading DeFi dapps early adopters on Base
- Making on-chain art accessible
- Base vs. other L2s: transactions & gas expenditure
- Conclusion
1. Introduction to Base
Base is a Layer-2 blockchain solution introduced by Coinbase to address the scalability concerns associated with traditional blockchains. It operates on two main foundational elements: the Optimistic Rollup technology and the OP Stack.
Optimistic Rollup Technology: This is the main engine that drives Base’s scalability. By using the Optimistic Rollup technique, Base manages to bundle multiple transactions together, subsequently submitting them as a single, consolidated transaction to the Ethereum mainnet. This bulk processing not only reduces the transactional load on the Ethereum mainnet but also enhances its scalability, making operations faster and more efficient.
OP Stack: Every great building needs a strong foundation. For Base, that foundation is the OP Stack. As a modular framework the OP Stack is instrumental in facilitating the creation of L2 chains. It brings to the table a plethora of features including a unified API, and a rich set of tools and libraries, simplifying the process of developing and deploying Layer-2 chains.
Furthermore, in line with Coinbase’s philosophy of making blockchain accessible and user-friendly, Base has been sculpted with a developer-friendly ethos. The platform boasts of clear, concise documentation that eases the developer’s journey, coupled with an intuitive API.
In assessing the key metrics, it’s pertinent to note that Base was initiated for developer testing at the close of July. Impressively, it registered an average of 10,574 daily Unique Active Wallets (dUAW), underscoring the robust enthusiasm within the developer community to support and evaluate the L2. Subsequent to the blockchain’s official launch, it recorded 52,692 UAW on its inaugural day, and by the next day, this figure soared to an unprecedented 77,294. However, since this peak, there has been a discernible decline, with an average of 46,491 dUAW.
For those seeking an in-depth exploration of Base, its underlying technologies, and its potential applications, we have a detailed evergreen article curated by our content team. Dive deep into the world of Base and unravel its intricate layers here.
2. Leading DeFi dapps early adopters on Base
Base has rapidly grown to become an active hotspot for decentralized applications (dapps). DappRadar makes it easier to track these dapps, providing insightful statistics and trends about the Base ecosystem.
Predominantly, Base has seen a surge in the integration of DeFi dapps. This observation underscores Base’s capacity to provide the necessary infrastructure for decentralized finance projects, emphasizing speed, efficiency, and scalability. A shining example of this is Stargate Finance. Emerging as one most popular dapp, Stargate Finance has made its mark as a pivotal bridge for tokens, cementing its place in the Base platform.
Alongside Stargate there’s Uniswap, the market leading decentralized exchange. These two market leading DeFi dapps were quick to cement their position within the Base ecosystem, while native dapps such as BaseSwap try to steal a market share.
Amidst the dominance of DeFi, Base hasn’t limited its scope. Gaming, a burgeoning sector in the blockchain world, has found a partner in Base. The game that stands out in this category is Parallel. This Web3 trading card game has quickly become the talk of the town. Having started its developmental journey in 2021, Parallel hit a major milestone by launching its beta on 31 July 2023. The game, apart from offering an engaging experience, allows players to earn card packs and PRIME tokens, an in-game cryptocurrency.
Just within the past week, Parallel has registered 3,700 UAW (Unique Active Wallets) and over 4,300 transactions. This highlights not just the game’s appeal but also the robustness of Base to support such intricate and heavy-load applications.
Last but not least, Friend.tech, a new dapp on Base, is gaining significant traction within the Web3 community. Designed to allow X (previously known as Twitter) personalities to offer shares for exclusive group chat access, it has accumulated $3 million in fees, translating to a revenue of $1.5 million in ether for the platform. The remaining $1.5 million is shared with the content creators.
As Base continues its ascent in the blockchain world, its identity seems to be forming around its DeFi capabilities. With the influx of DeFi dapps and their evident success, Base may well be on its way to be recognized as a DeFi-centric blockchain. However, the diversification into gaming, especially with titles like Parallel, indicates that while DeFi might be its forte, Base is versatile enough to embrace and excel in other domains too.
3. Making on-chain art accessible
While Base has been making headlines as a DeFi-centric blockchain, its endeavors into the eclectic world of NFTs shouldn’t be overlooked. The very fact that on 19 August, OpenSea, a leading NFT marketplace, made the strategic decision to shift its focus from BNB Chain NFTs to Layer-2 networks like Base speaks volumes about Base’s potential in the NFT sphere.
But let’s talk numbers for a moment. Since its public debut on 9 August, Base has chalked up a trading volume of $557,347, resulting from 54,523 sales. To put that in perspective, Arbitrum recorded $393,673 from a mere 9,872 sales, while , a project with a year’s head start, managed $2.3 million from 30,697 sales.
Delving further into the NFT realm, Base has marked its presence by introducing the “Onchain Summer” initiative. This venture notably includes collaborations with industry stalwarts such as Atari and Pixelmon. The primary objective of “Onchain Summer” is to offer mainstream users a captivating and straightforward gateway into the world of onchain art, gaming, and music. Till now, the campaign has amassed $2.6 million in revenue.
The “Onchain Summer” celebrations feature a daily roster of artworks from distinguished artists, including Pablo Stanley, Amber Vittoria, Spottie WiFi, PIV, and ARTJEDI1, not to mention contributions from the much-loved Degenerate Ape Academy collection. Scheduled to span several weeks, this campaign aims to amplify the visibility of Base’s mainnet dapp associates in digital art, music, and gaming sectors.
This campaign has also targeted Web2 companies, and in fact the works from Coca-Cola’s Masterpiece Global campaign can be minted in NFT format, exclusively for participants of the Onchain Summer.
Furthermore, the data shows that Tiny Based Frogs has captured the Base community, gobbling up a staggering 37% share of Base’s entire NFT trading volume.
As we wrap this up, one can’t help but be intrigued by the trajectory Base will trace in the vibrant world of NFTs. With its strong start and forward-thinking partnerships, the stage is set for some exciting times ahead.
4. Base vs. other L2s: transactions & gas expenditure
Ever since its launch in late July, Base has garnered significant attention. Having processed over 12.8 million transactions while consuming approximately 1,250 ETH ($2.08 million) in gas fees, its performance metrics have been closely observed. Additionally, it bridged $254 million in just 2 weeks.
In contrast, Arbitrum, in a similar timeframe of two weeks, recorded 2.2 million transactions with a total gas fee expenditure of 805 ETH ($1.32 million). While both platforms showcase robust metrics, Base is shaping up to be a formidable contender.
A review of Dune Analytics’ dashboard indicates that Base has notable efficiency in terms of gas fees when compared to other L2 solutions. The increase in transaction counts for Base within a short period indicates its growing popularity alongside well-established solutions like Optimism and Arbitrum.
Given these dynamics, what does Base bring to the L2 space?
At the outset, it’s crucial to understand that the journey of L2 solutions is still in its nascent stages, and a definitive future trajectory remains to be seen.
Now, to address the differentiation in a structured manner, let’s delve into the specifics:
Technical Efficiency: The primary differentiator lies in Base’s architectural prowess. While all three platforms rely on rollups, Base introduces an efficiency layer with its use of “zero-knowledge rollups” (ZK rollups). By batching both transactions and proofs, ZK rollups curtail the volume of data pushed to the Ethereum mainnet, translating to reduced gas fees and expedited transactions.
Coinbase Best Practices: When evaluating the potential of L2 platforms, the institutional force behind them can’t be ignored. Base, incubated by teams within Coinbase, leverages Coinbase’s expertise in developing easy-to-use products and security best practices.
Multifaceted Success Factors: The ultimate success of an L2 isn’t solely contingent on its technical prowess or its backing. A symbiotic relationship between technology, community support, and prevailing market dynamics is essential.
To conclude, while the future of L2 solutions remains open-ended, the present narrative strongly resonates with Base’s promise. The commendable initiatives from Optimism and Arbitrum only further augur well for the Ethereum ecosystem, pushing boundaries and fostering scalability and efficiency.
5. Conclusion
Base, the Layer-2 blockchain incubated by Coinbase, emerges as a beacon of innovation in the ever-evolving blockchain ecosystem. By integrating cutting-edge technologies like Optimistic Rollup and the versatile OP Stack, Base has demonstrated a compelling case for scalability and efficiency. The impressive traction, both in terms of dUAW and actual transaction numbers, corroborates the developer and community enthusiasm towards this novel solution.
Moreover, the burgeoning world of dapps on Base establishes Base as a versatile platform, adept at catering to a multitude of decentralized use cases. The monumental success of games like Parallel and the evident growth in the NFT sector underscores Base’s adaptability and broad-spectrum utility.
In essence, Base has successfully married technical innovation with practical application, capturing the essence of what Layer-2 solutions should embody. Its future trajectory, if the current momentum persists, will undeniably solidify its place as one of the paramount Layer-2 platforms supporting the Ethereum ecosystem. With its diversified offerings, strong backing, and a keen focus on user and developer experience, Base has the potential to play an instrumental role in shaping the future of blockchain scalability and utility.
