Base Hits $10 Million in Revenue and Its Implications
Base, a layer-2 scaling solution for ethereum using Optimism technology, has reached an impressive milestone since its debut in early August 2023. In fact, it has earned over $10 million in cumulative revenue in just a few months.
Steady Revenue Growth and User Base Expansion
According to Erick Smith, the chief investment officer of 401 Financial, as of late November, Base has experienced significant revenue growth and now boasts an average of over 1 million monthly active users. Token Terminal’s data, cited by Smith, sheds light on layer 2’s steady revenue growth, which indicates the increasing popularity of layer-2 solutions for ethereum.
Base’s Role in Enhancing User Experience and Reducing Gas Fees
By offering highly scalable environments and relatively lower gas fees compared to the mainnet, Base has attracted prominent protocols such as Aave and Friend.tech, both of which have launched on the platform. This represents a broader trend as both developers and users increasingly prefer layer-2 solutions.
Will Base’s TVL Follow ethereum Prices?
Looking at statistics from the ethereum-Base bridge and L2 Beat data, there has been a gradual decline in the number of tokens deposited and a plateau in Base’s total value locked (TVL) at around $580 million. However, a direct correlation between ETH‘s price movement and Base’s TVL suggests that the protocol’s assets and revenue may rise with ethereum‘s upward momentum.
The Growth Trajectory and Future of Base
While Base’s TVL appears to be stable for now, its future growth is closely tied to ethereum‘s performance. As ethereum prices surge, Base may be poised to attract even more assets and revenue, making it a significant force in the ethereum ecosystem.
### News source: bitcoinist.com