Base public chain small file
time online | July 2023 |
development team | Coinbase |
Use tokens | $ETH |
Blockchain type | EVM, Ethereum Layer 2 |
TVL on the chain | 7.27 b (USD) |
Number of agreements | 315 |
Public chain ranking | 6 |
Layer 2 public chain ranking | 2 |
Introduction to Base Chain
The Base public chain is an Ethereum Layer 2 blockchain developed by the Coinbase team. It is developed using Optimistic Rollup technology and joins the open source OP Stack project. It mainly focuses on building open source extension solutions for Ethereum Layer 2.
Further reading: What is ZK Stack? Modular Layer 2 toolkit to compete with OP Stack
The founding purpose of the Base public chain is not only to attract a large number of builders to enter the blockchain industry, but also to provide an efficient, safe and low-cost blockchain environment that billions of people can use, thereby promoting the decentralized financial system.
According to L2 Beat, the current TVL on the Base chain is as high as 7.3 billion US dollars, ranking second only to Arbitrum among many Layer 2s, with a market share of about 16%. However, it has been less than a year since the launch of the Base chain and it has been able to pay impressive Report card, the growth rate is amazing.
Base Chain Features - Coinbase exchange’s key support is the key
Smooth transactions and low gas costs
The Base chain has a fast and smooth transaction experience, and after the Ethereum Cancun upgrade on March 16 this year, EIP-4844 directly lowered the Gas level of Layer 2 by one level, almost rivaling Solana. Although the Base chain became popular later Its Gas has soared again, but the Base development team has also continued to improve the throughput of the Base chain. Currently, even cross-chain activities on the Base chain are quite smooth.
The graph comes from Messari. You can see that in March 2024, the transaction fees on Base began to overtake other Layer 2 including Arbitrum and Optimism.
With Ethereum security and open source technology
Base is Ethereum Layer 2, and the key data of the blockchain still needs to be transmitted to the Ethereum main network for verification. This also ensures the security of the Base chain. In addition, because the Base chain is committed to promoting decentralization, it will open source the technology. , attracting more developers to invest in the application research and development of the Base chain, which also results in the Base chain having many protocols. According to data from DefiLlama, the Base chain currently has 315 protocols, ranking seventh.
Coinbase support
As we all know, the Base chain is like the biological son of Coinbase, which will inevitably instill the industry resources in Coinbase's hands into the Base chain. We can see that in addition to Coinbase's huge user group becoming users of the Base chain, Coinbase's venture capital The institution Coinbase Ventures has also brought a lot of capital into the Base ecosystem. Well-known projects on Base including Farcaster, FriendTech, Degen, etc. can see the participation of some top institutions, such as a16z, Paradigm, DragonFly, Variant Funds, etc. It can be seen that the Base chain has Coinbase as a The backing has greatly contributed to its development.
Coinbase Introduction:
Coinbase Exchange was established in 2012. As of now, more than 100 countries can use Coinbase Exchange to freely trade cryptocurrencies. Coinbase was listed on the Nasdaq Stock Exchange on April 14, 2021, and is the first in the United States. A listed cryptocurrency exchange and the largest cryptocurrency exchange in the United States.
According to CoinGecko's report for the second quarter of 2024, Coinbase ranks fourth in the world in terms of market share, about 6-8%, and the number of registered users reaches tens of millions, which is quite impressive.
Extended reading: Interpretation of the 10,000-word Coinbase financial report and in-depth analysis of exchange industry profit data
Base's unique ecology - social applications and MEME craze
First, let’s take a look at several mainstream projects on the Base chain. These projects are the key to the Base chain’s today’s achievements and also demonstrate the unique ecology of the Base chain.
Social applications, DeFi basics
Decentralized social protocol - Farcaster
Farcaster is a decentralized social protocol that combines smart contracts with social networks through the Base blockchain. It supports developers to create various Dapps in Farcaster, allowing users to have their own data and identities, and maintaining cross-application interoperability. sex.
According to Dune statistics , the number of users of Farcaster has continued to hit new highs since its launch. Currently, it has been used by 620,000 people, with nearly 60,000 daily users. Its applications are also continuously developed, including the well-known gadget Frames and the so-called decentralized push. There are many popular applications such as the unique Warpcast and the creator economy platform Jam.
Farcaster received a US$30 million seed round led by a16z in July 2022, and received US$150 million in Series A financing led by Paradigm in May this year, with a valuation of up to US$1 billion. Farcaster has brought together a number of top crypto ventures. Investment institutions are included in the ranks of investors, which is amazing.
In March this year, the MEME project Degen on Farcaster successfully broke through the circle, with an increase of more than 200 times. It successfully brought about a wealth effect and focused the market's attention on the Base chain. Farcaster, as the main project on the Base chain, through decentralized social networking It drives a large number of applications, funds and resources to be built on the Base chain, becoming one of the most powerful boosters for Base.
Extended reading : Popular SocialFi with both chain and meme currency! Introduction to Farcaster, which is interactive and mining by publishing posts｜Airdrop Tutorial-Daily Coin Research
Decentralized social application - Friend.tech
Friend.tech is a decentralized social platform built on the Base chain and has close ties with X (Twitter). Well-known internet celebrities or celebrities on | Tokens can be used to obtain privileges, such as chatting one-on-one with internet celebrities. 5% of the revenue earned by the platform is also distributed to social influencers. In addition, the platform charges 5%. $KEY tokens can be freely bought and sold at any time.
In addition to the effects of celebrities and KOLs, the price of $KEY continues to rise. Buy early and make money early. Friend.tech also launched a points system, which determines the points level through activity and creates airdrop expectations. These mechanisms allow Friend.tech to achieve success in just one day. The inflow of more than 30 million US dollars during the month also drove the popularity of the Base chain to rise.
However, due to the high platform fees, no more new users joined, and the distribution of airdrops was not as good as the community expected. In addition to the conditions for receiving it, many users failed to receive the airdrops successfully, and the official announced later that they would withdraw the airdrops. Leaving the Base chain and developing blockchain independently has made Friend.tech fall from the altar. According to Dune data , the current daily active users are less than 100 and have disappeared from the eyes of the public.
Although Friend.tech failed to reverse the decline in the end, it was one of SocialFi's most successful projects, which laid a lot of foundation for the early stage of the Base chain.
Main DEX - Aerodrome
Aerdrome is the largest decentralized exchange on the Base chain. When the Base chain goes online in 2023, it will cooperate with the OP chain to fork its on-chain DEX Velodrome out of Aerdrome and accumulate hundreds of millions of dollars in TVL in just a few days. Lay the foundation for the DeFi environment on the Base chain.
Aerodrome uses an incentive system to attract users to the AERO - USDC trading pair to earn liquidity benefits. This mechanism also attracts more users to purchase its tokens $AERO, thereby causing the price to rise, so that users can obtain more liquidity. Earnings, this positive flywheel also made the token $AERO one of the best-performing cryptocurrencies in Q1 of 2024, with an increase of 2873%.
At present, Aerdrome is still the largest DEX on the Base chain, with TVL reaching US$630 million. In addition, it has also cooperated with Renzo and Eigenlayer, which are currently developing re-staking protocols, to integrate the Base chain into the re-staking boom and promote Aerdrome to more users.
Base Meme Craze
This bull market can be said to be the explosive period of Memecoin. Through its strong wealth effect and attention economic effect, it has become a sector that every ecology attaches great importance to. It is no longer a so-called shit coin or a useless coin, but Base has used it shortly after it was launched. The meme coin effect has successfully drawn market attention to the Base chain. Here are some well-known Meme coins.
Bald
Bald is the first Memecoin to become popular on the Base chain. Bald was launched on the Base chain on July 30, 2023. When it first appeared, its large liquidity pool attracted the attention of many speculators. From the beginning, the Bald team 6,700 $ETH were added to the liquidity pool, worth approximately US$12.5 million. In just two days, Bald's market value exceeded US$100 million, and the liquidity pool reached US$25 million.
However, as the price rose, the Bald team began to withdraw a large amount of liquidity, causing $Bald the token price to drop sharply, ultimately ending this money game. Although the Base chain was questioned because of the behavior of market manipulators, there is no doubt that It brings a certain amount of traffic exposure and on-chain transaction popularity to Base.
Degen
The $Degen token is a Memecoin issued by the Degen channel on Farcaster. It was initially used as a reward token to reward creators who publish high-quality content on Farcaster. The Farcaster community can give back to creators in the form of $Degen + comments. Many active creators They also received generous rewards.
As the popularity of the Farcaster community increased, the price of $Degen also soared, with its market value exceeding US$50 million. Subsequently, Degen announced in February this year that it had received 490.5 $ETH (approximately US$15 million) angel round financing led by 1confirmation. These funds will be used In the Degen community and Farcaster ecosystem.
Later, with the help of Degen, many Farcaster applications used $Degen tokens as application tokens. Later, Degen launched Layer 3. Also because Farcaster did not issue tokens, $Degen became a community brand symbol, and its market value increased in a short period of time. It skyrocketed to US$2 billion within the period, and $Degen the token price rose to a maximum of US$0.064, an increase of up to 200 times, causing a sensation on the entire network.
Although the $Degen token has dropped to $0.0068 as the market cools down, this wave of craze has led the crypto to recognize $Degen as the number one Memecoin on the Base chain. In addition to successfully gaining fame, it also binds the Base chain to the Meme craze.
Mfer & Poop
The $Mfer token is a meme coin issued by Sartoshi, the founder of the well-known NFT project Mfers. Through the meme craze on the Base chain, the $Mfer token soared from the opening price of $0.0015 to $0.31, achieving an increase of more than 200 times, which is huge. The wealth effect makes users flock to the Base chain. The $Poop token is also issued by the founder of the well-known NFT project Doodles. It has become a trend to issue Meme coins on the Base chain with high traffic and popularity. The Base chain has become the basis of Meme coins. One of the main battlefields.
Brett
The birth of the $Brett token is due to the character Brett in Matt Furie's Boy's Club comic series. The most popular meme coin in this bull market $PEPE is also a character. It has been less than half a year since $Brett was released on the Base chain and has become the Base The meme coin with the largest market value on the chain has a current market value of up to US$1.3 billion. This meme culture with specific supporters has also been perfectly integrated into the Base chain.
Pay attention to the Base ecosystem - the founders and KOLs you can’t miss
Base chain founder Jesse Pollak
Jesse Pollak was originally an engineer at the coinbase exchange, mainly responsible for coinbase's retail consumer market products. Jesse Pollak also performed very well. The team grew from less than 10 people in 2017 to more than 200 people in 2021, but in 2021 he wants to Leave coinbase and launch his startup. At this critical moment, coinbase CEO Brian Armstrong handed over an important task to Jesse Pollak, which is to "online" the coinbase business, that is, to connect to the blockchain. Faced with this challenge, Jesse Pollak found many ways, including establishing After more than a year of exploration and trial and error in DAO organizations, decentralized applications, identity applications and other solutions, we finally concluded: "We might as well build our own block training platform!", and thus Base was born.
Brian Armstrong, founder of Coinbase exchange:
In 2010, Armstrong saw Satoshi Nakamoto's "Bitcoin: A Peer-to-Peer Electronic Cash System", which led Brian Armstrong to plant the seeds of entrepreneurship and gradually It carried forward and co-founded coinbase with Fred Ehrsam in 2012, committed to building coinbase into the Google of the crypto. In an era when cryptocurrency was almost completely unknown, Armstrong became a pioneer in the encryption industry.
In an era when the crypto market does not pay attention to the regulatory environment, Armstrong takes the lead. In 2015, coinbase became the first formal exchange licensed in the United States. In 2018, it obtained a currency license from the British Financial Supervisory Authority and successfully entered the EU crypto market. business, the SEC also approved U.S. crypto transactions under Armstrong’s active promotion of crypto legislation in the same year. Later, coinbase also successfully listed on the Nasdaq Exchange in April 2021, becoming the first crypto exchage to list U.S. stocks, which ultimately contributed to The combination of the real world and crypto-finance enabled FTX exchange founder SBF and Binance founder CZ to escape unscathed when they faced prison terms and regulatory lawsuits.
Base vs Solana
Under the craze of memes, Base and Solana have now become meme battlefields besides the Ethereum mainnet. So what are the differences between the two chains? Let’s compare the two chains from the following perspective.
Transaction costs, Gas
One of the factors that support meme token transactions is the issue of handling fees. After all, no one wants to pay expensive handling fees for transactions. After the Ethereum Cancun upgrade, although Base’s handling fees have been significantly reduced to a level similar to Solana, Traffic jams will still drive up handling fees. The team is also continuing to optimize this point, and it can now support the issuance and trading of meme tokens.
Token popularity and transaction volume
Judging from the current popular Meme coins on Solana such as $Wif and $bonk, their number of holders, market value, transaction volume, etc. have greatly exceeded the meme coins on the Base chain, including whether the tokens are listed on the Binance exchange, and have become Token exposure and traffic popularity are important factors. Although these tokens on the Base chain are not as influential as Solana, it also shows that there may be more early opportunities to participate in the Base chain.
sense of community
Solana successfully created a lot of wealth effects in the last bull market and accumulated a huge loyal community. Many people are very optimistic about the development of Solana and support Solana’s on-chain tokens, while Base uses social applications such as Farcaster. We are actively cultivating community awareness. This part will take some time, but we can see the rapid growth of Base, and projects on the Base chain will also gain more community support in the future.
Conclusion
It has to be said that the growth of the Base chain is eye-catching. In less than a year, it has emerged among many Ethereum Layer 2, introducing meme culture and social applications into the Base chain to create a unique ecosystem. In addition to attracting More developers join the Base chain to jointly build it, and they gain increasing user participation, forming a positive cycle. From the data on the chain, we can also see that the transaction volume and number of transactions of the Base chain continue to break new highs, and the popularity continues to heat up.
As the popularity of Base increases, many people compare it with Solana. However, it seems that there is still some way to go before Solana's status. In the meme currency ecosystem, Base has already occupied a place. Can it continue this popularity? It will take time to verify.
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