Base Network Experiences Surge in Activity as Memecoins and Layer 2 Adoption Grow

Amidst Bitcoin's record-breaking trajectory, Base, an Ethereum-based layer 2 blockchain, has gained significant traction in March. With a surge in total volume locked and daily transactions, Base has surpassed 2 million transactions per week, marking unprecedented user activity. This growth is driven by popular decentralized exchanges and yield farming protocols, as well as the arrival of memecoins such as Degen and Brett.

Base Network Surges in Activity Amidst Bitcoin's Limelight

Amidst the fanfare surrounding Bitcoin's ascent to record highs and the introduction of exchange-traded funds (ETFs), a lesser-known blockchain has been steadily gaining traction: Base. This layer 2 blockchain, developed by Coinbase and built upon Ethereum, has witnessed a remarkable surge in development and usage during the month of March.

Data Points to Growing Network Activity

According to data collated by analytics platform DeFiLlama, Base has experienced a substantial increase in total volume locked (TVL) and daily volume. The TVL, currently estimated at US$1.169 billion (AU$1.8 billion), can largely be attributed to popular decentralized exchanges (dexes) such as Aerodrome, Uniswap, and lending and leveraged yield farming protocol Extra Finance.

Transaction Volume Skyrockets

Delving into further analytics from Dune, another renowned analytics platform, reveals a steep rise in user activity. Transactions on the Base network surpassed 2 million in the final week of March, reaching an unprecedented 2.1 million in early April. This surge eclipses previous highs set in September 2023, when transactions numbered only 1.4 million.

Enhanced Performance and Adoption

The surge in daily transactions on Base signifies not solely its technical prowess but also its expanding role within the broader blockchain and cryptocurrency ecosystem. It reflects positively on the network's adoption, scalability, security, economic model, and overall value proposition for users and developers alike.

Memecoins Flood into Base Network

A portion of the surge in activity can undoubtedly be attributed to the prevalent memecoin craze. Following the rise of Bonk and WIF on Solana, a wave of memecoins has made their way onto Base. Given the exceptional nature of both Solana and Base, offering low transaction costs in contrast to Ethereum's prohibitively high gas fees, it is unsurprising.

Presently, the most prominent memecoins on Base include Degen, Brett, and Toshi, which have witnessed significant growth in recent days.

April Fools' Prank Raises Concerns

As the first day of April has come and gone, it is crucial to remember that the crypto world, including memecoins, remains a volatile and potentially perilous realm. A dubious April Fools' Day prank perpetrated by a JuiceBox account—linked to an Ethereum-based crowdfunding protocol—ignited controversy recently.

Briliegh.eth falsely claimed to have secured a US$69 million (AU$106 million) investment from venture capital firm Paradigm, causing JuiceBox's native token JBX to ascend by over 45%, as reported by CoinMarketCap.

When the prank was revealed an hour later, the token's value plummeted by 25%. The incident, widely condemned on social media, has sparked discussions about the limits of humor in the highly volatile cryptocurrency space.