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Ethereum’s scalability woes are a thing of the past for many users thanks to Base. This Layer-2 solution, developed by the powerhouse crypto exchange Coinbase, has become one of the fastest-growing networks in the industry this year. Fueled by lower transaction fees and faster processing times, Base is attracting a growing roster of innovative projects, including Friend.tech, Farcaster, and Moonwell. While there’s no direct token investment in Base itself, investors can still gain exposure through Coinbase’s publicly traded stock, $COIN. Let’s delve deeper into what makes Base a game-changer and explore the top projects building on its promising blockchain.
What Is Base?
Imagine Ethereum as a busy highway with slow traffic, while Base, designed by Coinbase, acts as a high-speed express lane. Base is a decentralized scaling solution that works with Ethereum to speed up transactions. It batches and processes transactions efficiently before recording them on the main Ethereum blockchain, resulting in faster and cheaper transactions. Despite Coinbase developing Base, it operates as a decentralized network, free from Coinbase’s control. Interested in Base but hesitant about cryptocurrencies? You can still invest through Coinbase’s publicly traded stock, $COIN.
Base: Expansion and User Engagement
Since its August 2023 launch, Base has quickly become a leading L2 scaling solution, addressing the need for faster and cheaper Ethereum transactions. Despite fierce competition, Base attracted developers with user-friendly tools and support from Coinbase’s large user base. At its peak in March and April 2024, Base had the most daily active users among L2 solutions, though Arbitrum now holds the top spot. Base’s rapid rise highlights its potential, and the L2 competition continues.
Token Terminal reports Base has maintained over 350,000 daily active users since late March 2024. Popular applications include memecoins, DeFi, and social dApps. Base’s DeFi total value locked (TVL) grew from $437 million in early 2024 to over $1.6 billion by April, with Aerodrome and Uniswap leading due to memecoin trading.
Some Projects on the Base Ecosystem
Unlike some blockchains, Base thrives on community engagement. Its focus on user-friendliness, scaling power, and the built-in Coinbase user base has made it a magnet for social dApps and DeFi projects. Let’s explore some of the frontrunners building the future of Base.
• Farcaster: Breaking Free to Chat (and Meme)
Farcaster, an Ethereum-based social dApp ecosystem, provides a censorship-resistant platform for discussing various topics. Founded in 2020 by former Coinbase employees Dan Romero and Varun Srinivasan, its main product is Warpcast, a Twitter-like app where users post “casts,” follow others, and interact with posts.
Farcaster introduced Degen, a memecoin and the platform’s native token, in 2023. Initially an ERC-20 token on Base, Degen is transitioning to its own Layer-3 chain, which still utilizes Base as its Layer-2 infrastructure. Base remains the most popular chain for Farcaster users.
• Friend.tech: Turning Followers into Fellow Investors
Forget shouting into the social media void. Friend.tech, a Web3 social app launched in 2023, lets creators forge deeper connections with fans and even monetize their influence. Think of it as a VIP club where fans become co-owners, directly supporting creators they care about. The platform saw a surge in popularity among crypto influencers and even NBA stars towards the end of 2023, and after a dip, it’s showing signs of a strong comeback in Q2 2024.
• Moonwell: Borrowing and Lending on Base’s Moonshot
Moonwell isn’t just another DeFi app; it’s the reigning champ of lending and borrowing on Base. Clocking in at a cool $97 million TVL (with a healthy $69 million chunk on Base itself), Moonwell lets users earn on stablecoins, Ethereum, and even cutting-edge liquid staking tokens. With activity steadily rising in Q2 2024, Moonwell is poised to fuel Base’s DeFi ambitions.
• Seamless Protocol: Base’s Homegrown DeFi Hero (With a Twist)
Seamless Protocol isn’t just another DeFi borrower; it’s the first one built directly on Base. Think of it as the native lending arm of the network, similar to powerhouses like Aave and Compound. While its TVL has dipped since its December 2023 peak, Seamless Protocol boasts a growing user base, suggesting a loyal community betting on its future.
The future Prospects of Base
In less than a year, Base has defied expectations, surging to the forefront of blockchain scaling solutions. Its user-friendly approach, powered by Coinbase’s backing, has attracted a growing legion of developers and users. While established L2s like Polygon and OP once dominated, Base is rapidly changing the game.
The future looks bright for Base. With plans to further decentralize and enhance interoperability with other chains, Base is poised to solidify its position as a leading L2 network. While there’s no direct investment in Base itself, investors can still hitch their wagon to this rising star through Coinbase’s publicly traded stock, $COIN. Buckle up, because Base is primed to be a major player in the ever-evolving blockchain landscape.
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