Key Points
- Base has seen a surge in network activity, reaching new highs of over 5 million transactions per day.
- Base’s Total Value Locked (TVL) has soared to a record $2.19 billion, indicating growing user confidence.
Base, one of the fastest-growing Ethereum layer 2 networks, has been experiencing a bullish trend in the crypto market.
Its network activity has been robust, indicating a positive shift in the market dynamics.
Rise in Base Network Activity
Since March 2024, Base transactions have been steadily increasing.
According to data from DeFiLlama, the Ethereum Layer 2 network averaged less than 500,000 transactions per day before mid-March, but this has changed significantly.
The network recently reached new highs with over 5 million transactions per day.
Even during bearish periods, Base transactions have been growing.
The resurgence of bullish activity has further boosted this network activity, with the impact of market swings more evident in the volume and stablecoin data.
Correlation Between On-Chain Volume and Stablecoin Growth
On-chain volume and stablecoin market cap have shown significant correlation, with both showing exponential growth between March and April.
While stablecoins leveled out between May and August, their growth rate accelerated in September.
On-chain volume saw a significant decline between August and mid-September, but daily volume bounced back from below $400 million to over $700 million as of 27 September.
The network’s stablecoin market cap also hit a new high of $3.67 billion.
Before mid-March, its stablecoin market cap was below $400 million.
TVL Growth Indicates User Confidence
One key metric that underscores the surge in user confidence is Base’s TVL.
Base’s TVL recently soared to its highest ever level at $2.19 billion.
A year ago, Base had a TVL of $337 million, which means it has increased by over 548%.
This indicates a healthy liquidity that investors have been willing to invest in.
Over the last 3 weeks, the network added $780 million to its TVL.
This coincides with the market shift in favor of the bulls, suggesting that Base may experience more robust growth in the coming months, especially if the market continues to heat up.
