Anatoly Yakovenko, one of the co-founders of Solana, has highlighted the significant role that Base, a Layer 2 solution in the Ethereum ecosystem, plays. Yakovenko’s viewpoint is supported by the notable increase in user activities and transaction volumes associated with Base.
Base’s Growth
The Base network has witnessed substantial growth in key activity metrics such as Active Addresses, Transaction Count, and Transaction Volume, reaching record highs. Additionally, Base’s Stablecoin Market Capitalization and Total Value Locked (TVL) have also experienced upward trends.
The integration of Base with Coinbase’s extensive user base has contributed to the growing demand and metrics. Moreover, the popularity of meme coins within the Base ecosystem, particularly MOG and BRETT, has positively impacted the platform’s growth.
Aerodrome Finance’s Contribution to TVL Growth
According to reports from DefiLlama, Aerodrome Finance has played a significant role in the increase of Total Value Locked (TVL) in Base Layer 2, primarily due to meme coin trading volume. The platform has contributed $1.36 billion to the TVL of Base Layer 2.
In light of Base Layer 2’s impressive performance, Anatoly Yakovenko remarked:
“Base Layer 2 has demonstrated remarkable growth and has proven to be a valuable addition to the Ethereum ecosystem. Its integration with Coinbase and the popularity of meme coins have undoubtedly fueled its success.”
However, on-chain analyst Lily Liu raised concerns about the way active addresses are grouped. Liu noted that Solana’s monthly active address count is four times greater than that of Base, indicating that the current presentation does not accurately reflect the ecosystem’s true activity levels.
Liu suggested displaying EVM and non-EVM bars in different colors on a single bar chart to provide more accurate data presentation. She also emphasized that NEAR Protocol surpasses Base with its 31 million monthly active addresses.
Impact of Ethereum’s Market Position
Since the Dencun update, Ethereum has encountered certain challenges, including inflationary supply and declining revenues, which have become significant issues. In contrast, Base Layer 2 has emerged as a notable player among Ethereum’s Layer 2 solutions, establishing itself as an important entity. Layer 2 solutions are evolving as independent ecosystems with their own communities and economic activities.
In conclusion, the dynamics within the blockchain ecosystem are undergoing a shift, and Layer 2 solutions are increasingly becoming essential. Users and stakeholders are showing a growing interest in the advantages offered by Layer 2 solutions.
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Disclaimer: This article does not provide investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
