Coinbase’s Base blockchain is slowly emerging as a significant player in the DeFi space. As an Ethereum Layer-2 (L2) scaling solution, Base aims to alleviate the challenges of high transaction fees and network congestion on Ethereum by offering faster and cheaper transactions for DeFi users. And while it’s neither the first nor last L2 to take a turn at tackling Ethereum’s notorious congestion, it managed to relatively quickly establish itself as an important part of the DeFi infrastructure.
Analyzing Base’s success this year shows unrivaled growth in almost every metric. At the beginning of the year, Base’s total users numbered 2.938 million. By Feb. 1, it reached 3.233 million; by March 1, it jumped to 3.694 million. The fastest pace of user growth was recorded in March, as its total userbase reached 5.855 million by the beginning of April and stood at just over 6 million on April 3.
Looking at daily new users better illustrates this growth rate. Starting with an average of around 8,000 new daily users in January, this number increased to 13,000 in February and surged to more than 40,000 in the first half of March. March also saw a remarkable single-day peak of 636,000 new users on March 16 and continued its upward trend with an average of around 80,000 new users per day in April. While these numbers illustrate Base’s growing appeal in the DeFi space, they also show the platform’s capacity to onboard and manage a large influx of new users efficiently.
Financially, Base also performed impressively this year as it recorded a total profit of $5.591 million and revenue of $12.775 million at the beginning of the year. These figures grew modestly until March. By April, the total profit and revenue skyrocketed to $23.517 million and $41.285 million, respectively, and saw a slight increase to $25.149 million and $43.102 million by April 3.
The total value bridged on the platform can be used to analyze users’ perception of utility. Despite a slight initial decrease from $834.567 million to $715.266 million in the first quarter of the year, Base saw a significant reversal in March, with the total value bridged soaring to $1.258 billion by the beginning of April. As of April 3, the total value bridged to Base stood at $1.301 billion. This reversal shows an increasing volume of assets, the majority of which, being ETH, are being moved to Base.
On the transactions front, Base has processed a total of 149.93 million transactions since its launch last June, with user transactions making up 138.13 million of these. An average of 20.4 transactions per user and 11.78 transactions per block show the scope and efficiency of its throughput.
The creation of 63.499 million contracts on the platform shows that its users are anything but passive. The most active day for Base was March 30, with 2.39 million transactions and a user count of 458.83k, showing the platform’s peak operational capacity and engagement from its users.
This year, Base has seen rapid adoption and financial growth. It has attracted a vast userbase, which has led to a substantial increase in the number of transactions and revenue the platform has seen. Outside of a few outlier days this year, most of Base’s growth has been relatively consistent, with the platform handling the expansion well, as seen in the relatively small number of failed transactions and canceled contracts.
The DeFi expansion the market began witnessing this year is very much due to the overall favorable market conditions, with almost all market segments experiencing significant growth this year. Base’s future in the DeFi space will depend on its ability to maintain platform integrity and security while handling consistent growth in users and activity.
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