The dynamics have shifted in September in favor of cryptocurrency enthusiasts, and Base is one of the platforms that have been benefiting from this change. This can be seen through the increased level of network activity that has been observed.
Base has positioned itself as one of the rapidly expanding Ethereum layer 2 solutions. The recent performance of the network indicates that it is likely to experience significant advantages as the market continues to show signs of growth. Therefore, it is important to analyze how the platform has been performing in key areas recently.
Surge in Network Activity on BASE
The number of transactions on Base has been consistently increasing over the past few months, particularly since March 2024. According to DeFiLlama, the Ethereum layer 2 network was averaging fewer than 500,000 transactions per day before mid-March.
However, the situation has changed since then, with transactions steadily rising. The daily transaction volume has recently hit record highs, surpassing 5 million transactions per day.
An analysis of the data indicates that the number of Base transactions has been on the rise even during bearish market conditions. However, the recent bullish sentiment in the market has significantly boosted network activity, with a notable impact on trading volume and stablecoin metrics.
The on-chain volume has shown a strong correlation with the growth of stablecoins. For example, both volume and stablecoin market capitalization experienced exponential growth between March and April. While stablecoins exhibited stability between May and August, they started gaining momentum again in September.
Between August and mid-September, the on-chain volume took a dip. However, daily trading volume witnessed a remarkable increase from below $400 million to over $700 million as of September 27th.
Additionally, the stablecoin market capitalization on the network reached a new high of $3.67 billion. To contextualize this growth, the stablecoin market cap was below $400 million before mid-March.
Strong Growth in Total Value Locked (TVL) Reflects User Confidence
While the aforementioned metrics indicate a growing network utility, one particular metric underscores a notable increase in user confidence.
The Total Value Locked (TVL) on Base recently surged to $2.19 billion, reaching its all-time peak.
About 12 months ago, Base had a TVL of $337 million, indicating a remarkable increase of over 548%. This surge reflects healthy liquidity, demonstrating that investors are confident in the platform.
Over the last 3 weeks, the network managed to add $780 million to its TVL, which coincides with the period when market sentiment turned positive. This development suggests that Base could witness further substantial growth in the upcoming months, especially if the market continues its current trend.