Milestone driven by new 'basenames' service and Onchain Summer campaign, showcasing rapid growth and user engagement.
Coinbase's Base Network has recently achieved a significant milestone by surpassing 1 million daily active addresses. This achievement is largely attributed to the popularity of its new service called "basenames." Let's break down what this means and why it matters.
Base Network is a Layer-2 (L2) blockchain solution developed by Coinbase. Layer-2 solutions are designed to improve the scalability and efficiency of blockchain networks by processing transactions off the main Ethereum blockchain (Layer-1) and then reporting back. This helps to reduce congestion and lower transaction fees.
Reaching over 1 million daily active addresses is a significant indicator of the network's rapid growth and increasing user engagement. This milestone showcases a 60% growth since the beginning of August. Despite a slight dip, the network has maintained over 1 million active addresses, which is a strong sign of its stability and user retention.
One of the key drivers behind this growth is the introduction of "basenames." Basenames are similar to the Ethereum Name Service (ENS), allowing users to register human-readable names linked to their wallet addresses. This makes it easier for users to interact with on-chain applications, enhancing the overall user experience. In just a week, 200,000 basenames were registered, contributing significantly to the network's daily transactions, which have surged past four million.
The financial activities on Base Network have also seen a significant increase. The total value locked (TVL) on Base has reached $1.59 billion, indicating a 30% growth. Additionally, Base's share of decentralized exchange volume on Ethereum has risen to 9.25%. These metrics highlight the increasing capital influx into the DeFi ecosystem on Base.
Another factor contributing to Base's success is the "Onchain Summer" campaign. This initiative further boosted Base's adoption, reaching 4 million weekly active addresses. Campaigns like these are crucial for driving user engagement and adoption, as they often include incentives and educational content to attract new users.
