Is the layer 2 network of Coinbase at the crossroads?

Base, the layer 2 network of the largest exchange of American crypto, Coinbase, is confronted at difficult times after the strong entrance to the chain on the market over a year ago.

Data from the Intotheblock market analysis platform show that the basic ecosystem is under pressure, a challenge motivated by the recent market drop.

Basic pressure ecosystem

After reaching a peak of $ 4 billion of total locked value (TVL) in mid-December 2024, the base is now struggling with a TV of $ 3.2 billion, according to data from the decentralized TVL aggregator Defillama.

The volume of basic transactions has also increased from $ 2.2 billion in mid-December to $ 852 million currently. Network income increased from $ 629,000 to $ 192,000 at the time of the editorial staff. In addition, the chain’s active addresses and transactions have dropped considerably.

In the middle of the diving in active addresses and the number of transactions, Intotheblock mentioned that only a handful of tokens now have the majority of their profits, weakening the interests of retail.

The change of network can also be seen in transactions volumes – the intotheblock basket of eight basic active ingredients, notably Aerodome Finance (Aero), Morpho (Morpho) and Brett (Brett), recorded a 78% drop in chain volume since December.

Past performance of the base

Before the negative dynamics of the market, the base was the essential network for new retail traders. Its daily transactions jumped from 1,600% in 2024, from 372,000 in January to 6.63 million in October. Its TVL also increased by 470% on the same time, the share of the world channel TVL chain from 1.07% to 3.59%.

In addition, the basic daily transactions have skyrocketed 1,900% from 2.1 million to 42.34 million, which gained a market share of 9% in the world volume of daily transactions. At one point in November, the TVL of the chain rallied above $ 10 billion for the first time, making the base the second Ethereum Layer-2 network with more than $ 10 billion TVL dollars after Arbitrum.

After having recorded such a significant growth last year, the basic current condition raises the question of the network at a crossroads – if it is a temporary reverse or a turning point for layer 2 leader.

However, the year is just beginning and analysts expect a season in allusity in the coming months. This, the more ambitious ambitious roadmap for 2025, brings hope for the mid-term trajectory of the chain.