Base, the layer-2 scaling solution built on the Optimism technology for Ethereum, has successfully surpassed $10 million in cumulative revenue since its launch in early August 2023. This achievement highlights the consistent growth of revenues in Layer-2.
The increasing popularity of layer-2 solutions on Ethereum is evident in the significant rise in Base’s revenues. Scaling solutions, such as rollups, play a crucial role in enhancing user experience and gradually reducing gas fees on the Ethereum mainnet.
Base offers key advantages, enabling protocols to quickly launch in highly scalable environments with comparatively lower gas fees. In comparison to the mainnet, where a simple transaction costs $2.10, on Optimism, Base’s layer-2 solution, the same transaction costs $0.20.
Despite initial challenges, such as the Bald meme token incident, prominent protocols like Aave in the decentralized finance (DeFi) sector and Friend.tech, a decentralized social media platform, have chosen to launch on Base. Friend.tech, in particular, managed to accumulate over $25 million in protocol fees from more than 12.3 million unique transactions.
BASE To Follow Ethereum’s Price
Examining the statistics from DeFiLlama, there is a noticeable decrease in the number of tokens deposited in recent months. By late November, the bridge had locked $1.32 million in assets, primarily in wrapped Ethereum (wETH). This trend is also reflected in the Total Value Locked (TVL), according to L2 Beat data, which experienced steady growth before stabilizing above $580 million.
Although TVL remains stable, there is a direct correlation between Ethereum’s stop rates and the protocol’s TVL. It is possible that as Ethereum gains momentum and surpasses its April 2023 highs, Base is likely to manage more assets, further boosting its revenues.
It has proven to be a successful layer-2 solution for Ethereum, providing users and protocols with a more efficient and cost-effective environment. Its evolution will be crucial for blockchain users.