- Base continues to reach new all-time highs in several areas, underscoring its dominance.
- Basic network utility takes transactions to all-time highs
Base is aiming for the top spot as the leading Ethereum [ETH] layer 2 network.
The company has seen impressive growth so far this year, and recent observations indicate that it is strengthening its leadership position.
Base TVL highlights how much growth the network has achieved so far. Over the past twelve months, the price has been on a general upward trend, and it continues to rise.
Base’s TVL rose to $2.30 billion this week, which is officially the highest total value it has reached since launch.
Source: DeFiLlama
The robust TVL performance was also accompanied by healthy growth in the market capitalization of stablecoins. The latter also rose to a new ATH of $3.72 billion.
The strong TVL growth indicates that a lot of liquidity has flowed into the layer 2 ecosystem.
This is consistent with recent Dune data, which showed that liquidity flowing into Base outperformed that of the Ethereum mainnet.
According to Base’s data, approximately $32.1 million in liquidity was migrated to its ecosystem between June and October. Meanwhile, only $6.35 million migrated to Ethereum during the same period.
Source: Dune
Reports indicate that most of the liquidity flowed to Base during the aforementioned period migrated from CompundV2. Meanwhile, most of the liquidity flowing into Ethereum comes from Aave.
Robust transaction activity is fuel
These observations indicate that the layer 2 network has robust usage.
According to DeFiLlama, daily transactions on the Base network have grown steadily this year. They also reached a new ATH this week.
The number of transactions peaked at 5.73 million TX on October 8, which is the highest daily transaction it has reached to date.
To put things into perspective, the Base network’s daily transactions were less than 1 million transactions between January and mid-March.
Source: DeFiLlama
These findings underscore Base’s impressive rise to become one of the top Ethereum networks. It ranked second in the list of top Ethereum Layer 2 networks in terms of TVL, only outperformed by Arbitration [ARB].
The latter had a market capitalization of $2.32 billion at the time of writing, meaning it could potentially secure the top spot if it maintains its TVL rise.
In conclusion, Base is one of the best performing crypto networks so far this year thanks to a combination of factors. Robust address growth underlines the usefulness, healthy presence of stablecoins and an attractive liquidity environment.