Ethereum Layer-2 Scene Booming, Base Cumulative Revenue Exceeds $10 Million
Base, a layer-2 scaling solution for Ethereum built using the Optimism technology stack, has earned over $10 million in cumulative revenue since launching in early August 2023.
Taking to X on November 28, Erick Smith, the senior investment officer of 401 Financial, citing Token Terminal’s data, shared layer 2’s steady growth in revenue. Notably, as of late November, there was an impressive expansion in revenue, but the platform has an stereotype of over 1 million monthly zippy users.
Base Cumulative Revenue Exceeds $10 Million
Looking at Token Terminal data, Base’s revenue growth indicates the increasing popularity of layer-2 solutions. By default, Ethereum’s scaling solutions, which rollups are the technology powering some of the blockchain’s leading options, are hair-trigger for enhancing user wits and gradually lowering gas fees on the mainnet.
As Ethereum developers prioritize and promote the minutiae of solutions that scale the wiring layer, protocols, and users moreover increasingly prefer options like Base. As mentioned, Base, for instance, can help protocols seeking highly scalable environments launch quickly, benefiting from relatively lower gas fees. To illustrate, equal to L2fees, a simple transaction on the mainnet financing $2.10, while the same on Optimism is $0.20.
Over the months, Bald, the first meme token on Base, was deployed surpassing windfall prices crashed and deployers rugged early supporters. However, prominent protocols, including Aave, a leading decentralized finance (DeFi) protocol that enables users to lend and infringe coins, and Friend.tech, a decentralized social media platform that’s one of the most intensive dapp, have since launched on Base.
According to Dune Analytics, Friend.tech has piled over $25 million as protocol fees from the increasingly than 12.3 million unique transactions. While growth was explosive in the first months, zippy buyers and sellers, looking at trends, have stabilized but remain whilom 1 million.
Will Base’s TVL Follow Ethereum Prices?
Meanwhile, looking at statistics from the Ethereum-Base underpass from DeFiLlama, the number of tokens deposited has rapidly dropped over the past few months. In late November, the underpass locked $1.32 million of assets, mainly in wrapped Ethereum (wETH).
The same trend can be observed based on the total value locked (TVL) on Wiring from L2 Beat data. TVL steadily rose weeks without launching surpassing plateauing whilom $580 million.
For now, Base’s TVL is stable and often firm. Plane so, there is a uncontrived correlation between ETH’s stop rates and the protocol’s TVL. In the future, and as ETH gains momentum, breaking whilom April 2023 highs, it is highly likely that Wiring will manage increasingly assets, driving revenue plane higher.