Coinbase’s Base Ethereum Layer-2 Network Witnesses Growth in Token Holders
Coinbase launched Base as an Ethereum layer-2 network earlier this year, becoming the first publicly traded company to do so. Since its availability to the public on August 9, Base has experienced significant growth.
Increased Token Holders on Base
Recent data indicates a rise in the number of token holders on the Base ecosystem. According to crypto analytics platform Intotheblock, the number of holders of various tokens on the layer 2 network has been steadily increasing.
- Echelon Prime (PRIME) and Aero (AERO), lesser-known tokens, have seen the highest number of addresses on Base, with 16.83k and 7.77k respectively.
- Base has partnered with several industry players, including Chainlink, contributing to its popularity.
- The debut of Friend.tech, a decentralized social media platform, and the launch of Aerodome, a decentralized exchange on Base, have also attracted new users and pushed the total value locked on the network beyond $400 million.
A Gradual Decrease in Activity
Despite its initial surge in popularity and retail rush, activity on the Base blockchain has gradually decreased. Since August 25, 2023, there hasn’t been a single day where the transaction volume for prominent protocols on Base exceeded $4 million.
“The volume of these tokens appear to be directly correlated to the protocols incentives programs, suggesting that these tokens have yet to gain traction as a blue-chip.” – ITB
Drop in Daily Active Users
Data from Dune Analytics indicates that daily active users on Base have dropped by over 64% since reaching an all-time high of 145,479 on August 21, now standing at 51,763 as of October 31st.
Hot Take: Base’s Growth Faces Challenges
While Base initially experienced growth in token holders and attracted new users through partnerships and platform launches, its activity has gradually tapered off. The volume of tokens on the network seems to be tied to incentive programs, indicating a lack of traction as blue-chip assets. Additionally, the number of daily active users has significantly decreased. These challenges suggest that Base may need to implement strategies to regain momentum and retain user interest in the future.
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