The Rise of Base: What Sets It Apart in Web3
There is always a new big hype in every crypto cycle. Last time around, it was all about alternative layer-1s like Solana, or layer-1 ecosystems like Cosmos and Polkadot. At that time, people were still unsure about Ethereum’s move to ETH2.0.
While the hype around alternative layer-1 solutions has dropped, people now seek out layer-2s to save money on gas fees as the rapid growth of decentralised applications (dApps) and the increasing demand for Ethereum-based services have highlighted the need for efficient scaling solutions.
Among the numerous layer 2 solutions that have emerged recently, Base stands out for its unique approach and promising potential.
Differentiating Base from Other Layer 2 Solutions
Base is designed to address the key limitations of Ethereum, such as high gas fees and slow transaction speeds, without compromising on security or decentralisation. Here are some distinctive features that set Base apart from its peers:
Optimistic Rollups: While many layer 2 solutions employ various scaling techniques, Base utilises Optimistic Rollups. This approach batches multiple transactions off-chain and then submits them as a single transaction on the Ethereum mainnet, significantly reducing the computational load and lowering transaction costs. You can read more about the different types of Ethereum Layer-2’s in our article here.
Ease of Integration: Base offers seamless integration with existing Ethereum dApps. Developers can migrate their applications to Base with minimal changes to their codebases, making it an attractive option for projects looking to scale without extensive redevelopment.
Enhanced Security: Leveraging Ethereum’s robust security model, Base ensures that all transactions remain secure. The Optimistic Rollup mechanism also includes a fraud-proof system, allowing users to challenge any suspicious transactions.
User-Centric Design: Base places a strong emphasis on user experience. With lower fees and faster transactions, it provides a more accessible and efficient platform for both developers and end-users.
The Progress of Base in 2024
Since its inception last year, Base has shown significant progress and potential in transforming the Ethereum ecosystem. Here are some key highlights:
Leveraging Coinbase for user acquisition
Base is incubated by Coinbase to seamlessly bridge their users to the crypto economy. It is integrated into the Coinbase mobile and web applications, with easy fiat on and off ramps from the exchange.
With 110 million users at Coinbase today and 7 million on Base, there is much room for the Base ecosystem to grow. Since Coinbase is where most everyday American investors dip their toes into crypto waters, Base has huge potential to leverage this access point. It’s a natural progression for those starting their crypto journey on Coinbase that Base becomes their go-to blockchain.
The Allure of Base Memes: Their Explosive Success Draws in More Traders
The Base-based memecoins. These dark horses — Degen, Brett and Toshi — are causing a stir like never before.
These memecoins aren’t just making waves; they’re causing tsunamis. We’re talking double-digit weekly gains with some of these tokens having seen explosive growths of over 1,000% in token price appreciation since their launches.
Traders have jumped onto the Base memecoin frenzy in the hopes of turning a small amount of capital into a big return.
And let’s also not forget about the community. Base has built a loyal following of traders, developers, and enthusiasts who are passionate about the platform’s potential. From Telegram groups to Discord channels, there’s no shortage of places to connect with like-minded individuals and share ideas.
Continued Momentum as TVL and Volume Continues to Grow
The Base narrative has recently prevailed as TVL and volume soar with resounding strength. A mix of on-chain metrics, upcoming ecosystem developments, and analysts’ opinions indicate that the meta may only just be starting.
Most importantly, Base’s network is thriving. For instance, DeFiLlama data shows its 24-hour trading volume currently exceeds $500 million. In comparison, the figure was just $25 million at the end of January.
Meanwhile, its total value locked (TVL) is currently sitting at a new ATH, currently at over $1.7 billion. This has also exploded, with the figure sitting at $391 million on January 31.
It is clear from these on-chain metrics that there is a growing interest in the Base network, and the upcoming launch of the Coinbase Smart Wallet could further skyrocket its adoption.
SubQuery’s Choice of Base for Mainnet
We recently chose Base to launch our mainnet earlier this year. There are three key factors that solidified Base as the right partner for us:
Technical Excellence: Like SubQuery, Base is designed with a developer-first approach. Base offers full EVM compatibility at a fraction of the cost and gasless transactions with easy developer APIs for account abstraction.
Multi-chain Vision: SubQuery already has customers on over 180 supported networks. With Base’s commitment to network interoperability, it makes it easier for customers to transact and move across chains easily and affordably, creating a consistent user experience and laying the groundwork for teams everywhere to build a decentralised future.
Ecosystem Support: Base is incubated by Coinbase, one of the largest centralised exchanges in the world and boasts an impressive amount of transaction traffic, liquidity, users, and financial products. By building on Base, SubQuery gains access to Coinbase product integrations, fiat onramps, and powerful acquisition tools, allowing the existing users and assets on Coinbase ecosystem to easily interact with SubQuery’s decentralised infrastructure network.
When speaking to the Base team it quickly became clear that we had a shared vision and common principles for the future of blockchain. In order for us to revolutionise web3 infrastructure we need access to the right tools and the right developer communities, Base’s ecosystem is best positioned to help us on this quest.
“Decentralising RPCs and data indexing is crucial for the next phase of on-chain adoption. We welcome SubQuery’s support to ensure all builders have access to performant and decentralised infrastructure solutions.
– Rowan Stone, Head of Business at Base
Conclusion
Base emerges as a beacon of promise amidst evolving crypto landscapes. Its seamless integration with Coinbase and remarkable growth metrics, fueled by the explosive rise of its memecoins, herald a new era of attention for Base in the crypto sphere.
This surge presents a golden opportunity for us. As the key infrastructure player on Base, we stand to indirectly draw more users to the SubQuery Network, riding the wave of Base’s burgeoning success. Exciting times lie ahead!
About SubQuery
SubQuery Network is innovating web3 infrastructure with tools that empower builders to decentralise the future. Our fast, flexible, and open data indexer supercharges dApps on over 180 networks, enabling a user-focused web3 world. Soon, our Data Node will provide breakthroughs in the RPC industry, and deliver decentralisation without compromise. We pioneer the web3 revolution for visionaries and forward-thinkers. We’re not just a company — we’re a movement driving an inclusive and decentralised web3 era. Let’s shape the future of web3, together.
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