Base, the Layer-2 network of the largest American crypto exchange, Coinbase, is confronted more than a year ago with difficult times after the strong entrance of the chain in the market.
Data from the Market Analysis Platform IntotheBlock show that the basic ecosystem is under pressure, a challenge driven by the recent dip of the market.
Base -Ecosystem under pressure
After reaching a peak of $ 4 billion in total value (TVL) in mid-December 2024, Base is now struggling with a TVL of $ 3.2 billion, according to data from decentralized TVL-Aggregator Defillama.
Base’s transaction volume has also fallen from $ 2.2 billion in mid -December to $ 852 million. The turnover of the network has fallen from $ 629,000 to less than $ 192,000 at the time of writing. Moreover, the active addresses and transactions of the chain have fallen considerably.
In the midst of the dive in active addresses and transaction counting, IntotheLock said that only a handful of tokens now has the majority of their holders in win, which weakens the retail interest.
The network shift can also be seen in transaction volumes-the basket of IntotheLock of eight basic assets, including Aerodome Finance (AERO), Morpho (Morpho) and Brett (Brett), have registered a decrease of 78% in the chain volume since December.
Base’s earlier performance
Before negative market dynamics, Base was the go-to network for new retail traders. The daily transactions rose 1,600% in 2024 and grew from 372,000 in January to 6.63 million in October. The TVL also rose by 470% compared to the same time frame, whereby the share of the chain of the global TVL on-chains expanded from 1.07% to 3.59%.
In addition, the daily transactions of the base were 1,900% from 2.1 million to 42.34 million, so that the network earned a market share of 9% in the global daily transaction volume. At one point in November, the TVL of the chain exceeded $ 10 billion for the first time, making Base the second Ethereum Layer-2 network with more than $ 10 billion TVL, after arbitrum.
After registering such a significant growth last year, the current state of Base raises the question that the network is at a crossroads and this is a temporary setback or a turning point for the leading Layer-2 chain.
However, the year has just begun and analysts are expecting an alert season in the coming months. This, plus the ambitious route map of Base for 2025, brings hope to the interim process of the chain.