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 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 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":" 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 […]<\/p>\n","protected":false},"author":0,"featured_media":46793,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-46792","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/46792"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46792"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/46792\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/46793"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Base Ecosystem Under Pressure<\/h2>\n
Base\u2019s Past Performance<\/h2>\n