{"id":2979,"date":"2025-02-21T22:26:43","date_gmt":"2025-02-21T22:26:43","guid":{"rendered":"https:\/\/ourcryptoworld.com\/base-faces-market-turmoil-is-coinbases-layer-2-network-at-a-crossroads\/"},"modified":"2025-02-21T22:26:43","modified_gmt":"2025-02-21T22:26:43","slug":"base-faces-market-turmoil-is-coinbases-layer-2-network-at-a-crossroads","status":"publish","type":"post","link":"https:\/\/ourcryptoworld.com\/el\/crypto-news\/base-faces-market-turmoil-is-coinbases-layer-2-network-at-a-crossroads\/","title":{"rendered":"Base Faces Market Turmoil: Is Coinbase\u2019s Layer-2 Network at a Crossroads?"},"content":{"rendered":"
Comparing Base\u2019s past and current performance raises concerns about the network experiencing a temporary setback or a turning point.<\/strong><\/h5>\n

Base, the layer-2 network of the largest American crypto exchange, Coinbase, is facing tough times following the chain\u2019s strong entrance into the market over a year ago.<\/p>\n

Data from the market analytics platform IntoTheBlock shows<\/a> that the Base ecosystem is under pressure, a challenge driven by the market\u2019s recent dip.<\/p>\n

Base Ecosystem Under Pressure<\/h2>\n

After reaching a peak of $4 billion in total value locked (TVL) in mid-December 2024, Base is now struggling with a TVL of $3.2 billion, according to data<\/a> from decentralized TVL aggregator DeFiLlama.<\/p>\n

Base\u2019s transaction volume has also fallen from $2.2 billion in mid-December to $852 million currently. The network\u2019s revenue has plummeted from $629,000 to less than $192,000 at the time of writing. Additionally, the chain\u2019s active addresses and transactions have tumbled significantly.<\/p>\n

Amid the plunge in active addresses and transaction count, IntoTheBlock mentioned that only a handful of tokens now have the majority of their holders in profit, weakening retail interest.<\/p>\n

The network shift can also be seen in transaction volumes \u2013 IntoTheBlock\u2019s basket of eight Base assets, including Aerodome Finance (AERO), Morpho (MORPHO), and Brett (BRETT), have recorded a 78% decline in on-chain volume since December.<\/p>\n

Base\u2019s Past Performance<\/h2>\n

Before the negative market dynamics, Base was the go-to network for new retail traders. Its daily transactions surged<\/a> 1,600% in 2024, growing from 372,000 in January to 6.63 million in October. Its TVL also rose by 470% over the same timeframe, with the chain\u2019s share of the global on-chain TVL expanding from 1.07% to 3.59%.<\/p>\n

In addition, Base\u2019s daily transactions skyrocketed by 1,900% from 2.1 million to 42.34 million, earning the network a 9% market share in the global daily transaction volume. At some point in November, the chain\u2019s TVL rallied<\/a> above $10 billion for the first time, making Base the second Ethereum layer-2 network with more than $10 billion TVL, following Arbitrum.<\/p>\n

Having recorded such significant growth last year, Base\u2019s current condition raises the question of the network being at a crossroads \u2013 if this is a temporary setback or a turning point for the leading layer-2 chain.<\/p>\n

However, the year is just starting, and analysts expect an altseason in the coming months. This, plus Base\u2019s ambitious roadmap<\/a> for 2025, brings hope about the chain\u2019s mid-term trajectory.<\/p>\n

The post Base Faces Market Turmoil: Is Coinbase\u2019s Layer-2 Network at a Crossroads?<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Comparing Base\u2019s past and current performance raises concerns about the network experiencing a temporary setback or a turning point. Base, the layer-2 network of the largest American crypto exchange, Coinbase, is facing tough times following the chain\u2019s strong entrance into the market over a year ago. Data from the market analytics platform IntoTheBlock shows that the Base ecosystem is under pressure, a challenge driven by the market\u2019s recent dip. Base Ecosystem Under Pressure After reaching a peak of $4 billion in total value locked (TVL) in mid-December 2024, Base is now struggling with a TVL of $3.2 billion, according to data from decentralized TVL aggregator DeFiLlama. Base\u2019s transaction volume has also fallen from $2.2 billion in mid-December to $852 million currently. The network\u2019s revenue has plummeted from $629,000 to less than $192,000 at the time of writing. Additionally, the chain\u2019s active addresses and transactions have tumbled significantly. Amid the plunge in active addresses and transaction count, IntoTheBlock mentioned that only a handful of tokens now have the majority of their holders in profit, weakening retail interest. The network shift can also be seen in transaction volumes \u2013 IntoTheBlock\u2019s basket of eight Base assets, including Aerodome Finance (AERO), Morpho (MORPHO), and Brett (BRETT), have recorded a 78% decline in on-chain volume since December. Base\u2019s Past Performance Before the negative market dynamics, Base was the go-to network for new retail traders. Its daily transactions surged 1,600% in 2024, growing from 372,000 in January to 6.63 million in October. Its TVL also rose by 470% over the same timeframe, with the chain\u2019s share of the global on-chain TVL expanding from 1.07% to 3.59%. In addition, Base\u2019s daily transactions skyrocketed by 1,900% from 2.1 million to 42.34 million, earning the network a 9% market share in the global daily transaction volume. At some point in November, the chain\u2019s TVL rallied above $10 billion for the first time, making Base the second Ethereum layer-2 network with more than $10 billion TVL, following Arbitrum. Having recorded such significant growth last year, Base\u2019s current condition raises the question of the network being at a crossroads \u2013 if this is a temporary setback or a turning point for the leading layer-2 chain. However, the year is just starting, and analysts expect an altseason in the coming months. This, plus Base\u2019s ambitious roadmap for 2025, brings hope about the chain\u2019s mid-term trajectory. The post Base Faces Market Turmoil: Is Coinbase\u2019s Layer-2 Network at a Crossroads? appeared first on CryptoPotato.<\/p>","protected":false},"author":1,"featured_media":2313,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","footnotes":""},"categories":[1],"tags":[87,51],"channels-categories":[],"class_list":["post-2979","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-base","tag-crypto-news"],"uagb_featured_image_src":{"full":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network.jpg",1201,720,false],"thumbnail":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-150x150.jpg",150,150,true],"medium":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-300x180.jpg",300,180,true],"medium_large":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-768x460.jpg",768,460,true],"large":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-1024x614.jpg",1024,614,true],"1536x1536":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network.jpg",1201,720,false],"2048x2048":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network.jpg",1201,720,false],"trp-custom-language-flag":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-18x12.jpg",18,12,true],"post-thumbnail":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-370x265.jpg",370,265,true],"kava-thumb-s":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-150x85.jpg",150,85,true],"kava-thumb-s-2":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-230x230.jpg",230,230,true],"kava-thumb-m":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-400x400.jpg",400,400,true],"kava-thumb-m-vertical":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-370x500.jpg",370,500,true],"kava-thumb-m-2":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-570x450.jpg",570,450,true],"kava-thumb-l":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-1170x650.jpg",1170,650,true],"kava-thumb-xl":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network.jpg",1201,720,false],"kava-thumb-masonry":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-600x360.jpg",600,360,true],"kava-thumb-justify":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-640x640.jpg",640,640,true],"kava-thumb-justify-2":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-1201x640.jpg",1201,640,true],"woocommerce_thumbnail":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-500x300.jpg",500,300,true],"woocommerce_single":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-700x420.jpg",700,420,true],"woocommerce_gallery_thumbnail":["https:\/\/ourcryptoworld.com\/wp-content\/uploads\/2024\/11\/Base_Network-100x100.jpg",100,100,true]},"uagb_author_info":{"display_name":"crypto","author_link":"https:\/\/ourcryptoworld.com\/el\/author\/crypto\/"},"uagb_comment_info":0,"uagb_excerpt":"Comparing Base\u2019s past and current performance raises concerns about the network experiencing a temporary setback or a turning point. Base, the layer-2 network of the largest American crypto exchange, Coinbase, is facing tough times following the chain\u2019s strong entrance into the market over a year ago. Data from the market analytics platform IntoTheBlock shows that…","_links":{"self":[{"href":"https:\/\/ourcryptoworld.com\/el\/wp-json\/wp\/v2\/posts\/2979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ourcryptoworld.com\/el\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ourcryptoworld.com\/el\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ourcryptoworld.com\/el\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ourcryptoworld.com\/el\/wp-json\/wp\/v2\/comments?post=2979"}],"version-history":[{"count":0,"href":"https:\/\/ourcryptoworld.com\/el\/wp-json\/wp\/v2\/posts\/2979\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ourcryptoworld.com\/el\/wp-json\/wp\/v2\/media\/2313"}],"wp:attachment":[{"href":"https:\/\/ourcryptoworld.com\/el\/wp-json\/wp\/v2\/media?parent=2979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ourcryptoworld.com\/el\/wp-json\/wp\/v2\/categories?post=2979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ourcryptoworld.com\/el\/wp-json\/wp\/v2\/tags?post=2979"},{"taxonomy":"channels-categories","embeddable":true,"href":"https:\/\/ourcryptoworld.com\/el\/wp-json\/wp\/v2\/channels-categories?post=2979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}