- The base reached new TVL and stablecoin market cap highs as bullish enthusiasm returned to the market.
- Performance statistics confirmed a healthy improvement in network trust and usefulness
The tides changed in September in favor of crypto bulls and Base is among the networks that benefited from this change. This is evident from the resurgence of robust network activity.
Base has positioned itself as one of the fastest growing layer 2s of Ethereum. The network’s recent performance proves that the network will likely benefit immensely as the market continues to heat up. It is therefore worth examining how the situation has played out in key areas in recent times.
BASE sees increased network activity
Core transactions have been increasing steadily over the past few months, especially since March 2024. In fact, DeFiLlama revealed that the Ethereum Layer 2 network was averaging less than 500,000 transactions per day before mid-March.
However, this changed and transactions have continued to grow ever since. It recently reached new highs above 5 million transactions per day.
Source: DeFiLlama
The chart revealed that basis transactions increased even during downturns. However, the resurgence of bullish activity has boosted its network activity. The impact of market fluctuations was most evident in volume and stablecoin data.
On-chain volume has demonstrated a significant correlation with stablecoin growth. For example, volume and stable market cap increased exponentially between March and April. Today, while stablecoins stabilized between May and August, their pace of growth accelerated in September.
Source: DeFiLlama
On-chain volume also saw a significant decline between August and mid-September. On the contrary, daily volume saw a significant rebound from less than $400 million to over $700 million as of September 27.
The network’s stable market capitalization also reached a new high of $3.67 billion. To put this growth in perspective, its stable market cap was less than $400 million before mid-March.
Robust growth of TVL confirms user confidence
While the aforementioned metrics highlight the growing utility of the network, one metric highlights a sharp increase in user trust.
The base’s TVL recently soared to $2.19 billion – its all-time high.
Source: DeFiLlama
Base had a TVL of $337 million exactly 12 months ago, meaning it’s up over 548%. This is a sign of healthy liquidity, in which investors are ready to invest.
The network added $780 million to its TVL over the past 3 weeks. This is around the same time that the market shifted in favor of the bulls. This result means that Base could see more robust growth in the months to come. Especially if the market continues to heat up.
