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Exciting Developments Expected from Leading Projects on Base Chain in 2024

Key Takeaways:

Base, an Ethereum scaling solution developed by Coinbase, is establishing itself as one of the top Layer-2 networks in 2024.
Notable projects on Base include Friend.tech, Farcaster, and Moonwell.
While Base does not have its own token, investors can still tap into its growth potential through Coinbase’s $COIN stock.

Layer-2 blockchains are transforming the crypto space by enhancing the scalability and efficiency of Layer-1 networks like Ethereum. Among these Layer-2 chains, Base stands out as a frontrunner, experiencing rapid growth due to its cost-effectiveness and high transaction speeds. Being launched by Coinbase certainly adds to its appeal.
Base is designed to enhance Ethereum’s scalability, lower transaction costs, and provide a better user experience for decentralized applications (dApps). Coinbase’s vision for Base is to onboard the next billion users onto the blockchain.
In our latest guide, we delve into the top projects currently leveraging Base, offering insights into potential investment opportunities. (Even though there is no BASE token, investors can participate in the ecosystem through Coinbase’s $COIN stock.)
What is Base?
Base functions as a decentralized scaling solution for Ethereum.
Developed by Coinbase, a leading centralized crypto exchange in North America, Coinbase is a publicly traded company listed on the Nasdaq exchange under the ticker symbol $COIN.
Despite being developed by a corporate entity, Base remains a decentralized network where Coinbase maintains a hands-off approach. With its process of consolidating Ethereum transactions into batches before settling them separately and recording them on-chain, Base offers a faster and more cost-effective alternative to processing individual transactions.

Growth and User Adoption
Since its launch in August 2023, Base has emerged as one of the fastest-growing Layer-2 solutions, driven by the increasing demand for Ethereum scaling solutions.
While facing stiff competition in the Layer-2 space, Base has attracted users with its developer-friendly tools and integration with Coinbase’s extensive user base.
During March and April 2024, Base often boasted the highest number of daily active users among Layer-2 networks; however, it has recently been surpassed by Arbitrum.

Data from Token Terminal reveals that Base has maintained a daily active user count above 350k since late March 2024. Noteworthy use cases on Base include memecoins, decentralized finance (DeFi), and social dApps.
Base has particularly gained traction in the DeFi sector, with its total value locked (TVL) soaring from $437 million at the beginning of 2024 to over $1.6 billion by the end of April. The two leading DeFi applications by TVL are decentralized exchanges: Aerodrome and Uniswap. This surge can be attributed to the growing popularity of memecoins on Base, which has been driving trading activity on decentralized exchanges.
Daily transactions on Base spiked from under 500k in March 2024 to over 3 million the following month.

One of the key catalysts behind the increased activity on Base and other Layer-2 networks was Ethereum’s Dencun upgrade. This upgrade enables L2s to store data more efficiently, resulting in a reduction of transaction fees by up to 95%.
Base does not operate with a native token but relies on Ethereum for gas fees. The network’s fee revenue hit a peak of over $2.3 million by the end of March.

Top Projects in the Base Ecosystem
Prioritizing community engagement, Base positions itself as a blockchain network for the people. Numerous social dApps and DeFi protocols are choosing to build on Base due to its strong performance, scalability features, and the sizable user base drawn from Coinbase. Let’s explore some of the prominent projects currently thriving on Base.

Farcaster is a social dApp ecosystem built on Ethereum. It provides a platform for censorship-resistant social applications where users can engage in diverse discussions.
Founded in 2020 by former Coinbase employees Dan Romero and Varun Srinivasan, Farcaster’s flagship product is Warpcast, a Twitter-like app allowing users to post “casts,” follow others, and interact with posts.
Farcaster is linked to a memecoin called Degen, serving as the platform’s native token since its launch in 2023. While Degen is an ERC-20 token on Base, it is transitioning to its own Layer-3 chain, leveraging Base as its Layer-2 infrastructure, with Base being the preferred chain among Farcaster users.

Friend.tech is a decentralized social dApp that empowers creators to monetize their influence, fostering personalized connections with followers.
Since its inception in 2023, this Web3 application has garnered attention from various crypto influencers and NBA players. While the social dApp experienced a dip in popularity towards the end of 2023, it has shown signs of revival in Q2 2024.

Moonwell stands out as the leading DeFi lending platform on Base, boasting a TVL of approximately $97 million, with $69 million on Base and the remainder on Moonbeam.
Stablecoins, Ethereum, and liquid staking tokens are among the most sought-after assets on Moonwell. The platform’s activity continues to gain momentum in Q2 2024.

Seamless Protocol emerges as the inaugural DeFi lending protocol native to Base. Governed by the SEAM token, it functions similarly to established platforms like Aave and Compound.
While SeamlessFi’s TVL has declined over 70% from its peak in December 2023, active user numbers continue to rise.

Echelon Prime serves as a Web3 gaming ecosystem enabling games to utilize blockchain features. The platform develops tools to drive the adoption of decentralized gaming and blockchain-based economies. Echelon’s token, PRIME, is leveraging the Base network, boasting a market cap exceeding $640 million.

Grand Base pioneers as the premier decentralized marketplace for synthetic real-world assets (RWAs), allowing investors exposure to tokenized RWAs. For instance, users can trade the tokenized version of Amazon stock as an ERC-20 token.

The Future Outlook for Base
Despite being less than a year old, Base has rapidly ascended as a leading blockchain scaling solution, surpassing more established Layer-2 networks like Polygon and OP.
Supported by Coinbase, Base has attracted a growing user base. Plans to enhance its decentralization further and bolster interoperability with other chains indicate its commitment to solidify its leadership position among Layer-2 solutions.
While Base does not feature a native token, investors can participate in its expanding ecosystem through Coinbase’s $COIN stock.
Investor Takeaway
Base represents a significant technological advancement in the crypto realm, enhancing Ethereum’s scalability, reducing transaction costs, and elevating the user and developer experience.
Utilizing its rollup technology, Base efficiently processes transactions, attracting more users to its network. This is evident in its rapid growth and TVL exceeding $1.6 billion.
As Base continues to expand its array of dApps, especially within DeFi and social platforms, it presents significant potential for investors. While Base itself lacks a native token, investment avenues may emerge through associated projects and Coinbase’s stock, $COIN, offering indirect exposure to Base’s success.
 
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