Base Generates Over $10 Million in Revenue
Base, a layer-2 scaling solution for Ethereum built using Optimism technology, has achieved more than $10 million in cumulative revenue since its launch in early August 2023. According to Token Terminal’s data shared by Erick Smith, the chief investment officer of 401 Financial, Base has experienced steady revenue growth and currently has over 1 million monthly active users.
The Increasing Popularity of Layer-2 Solutions
Token Terminal data indicates that Base’s revenue growth reflects the rising popularity of layer-2 solutions on Ethereum. These scaling solutions, such as rollups, are crucial for improving user experience and reducing gas fees on the mainnet. Ethereum developers and users are increasingly favoring layer-2 options like Base because they offer highly scalable environments and lower gas fees compared to the mainnet.
Leading Protocols Choose Base
Protocols like Aave and Friend.tech have chosen to launch on Base due to its scalability and cost advantages. Aave, a prominent decentralized finance (DeFi) protocol, and Friend.tech, a decentralized social media platform, have already accumulated significant protocol fees and attracted millions of transactions on Base.
The Relationship Between TVL and Ethereum Prices
The number of tokens deposited through the Ethereum-Base bridge has decreased in recent months. Similarly, the total value locked (TVL) on Base has reached a plateau above $580 million according to L2 Beat data. However, there is a direct correlation between ETH’s price movement and Base’s TVL. If ETH continues to gain momentum and surpass previous highs, it is likely that Base will attract more assets and generate even higher revenue.
Hot Take: Base’s Success Reflects the Growing Demand for Layer-2 Solutions on Ethereum
The success of Base in generating over $10 million in revenue demonstrates the increasing demand for layer-2 scaling solutions on the Ethereum network. As developers and users seek more scalable and cost-effective options, platforms like Base provide the necessary infrastructure to enhance the overall Ethereum ecosystem. With its ability to lower gas fees and support high transaction volumes, Base has attracted leading protocols and achieved significant revenue growth. As Ethereum prices continue to rise, Base’s total value locked is expected to follow suit, further solidifying its position as a key player in the layer-2 space.
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