Base hits new milestones: Key observations of the Ethereum L2 shows…

• Base marketcap just soared to a new all-time high underpinned by sustained volumes.
• TVL and transaction growth complete a picture of a healthy DeFi ecosystem.

The Ethereum [ETH] layer 2 ecosystem has been expanding and Base has emerged as one of the L2 networks on the fast lane. Base recently achieved new milestones, including a new stablecoin marketcap all-time high.

Base has been rising in the ranks of the existing Ethereum layer 2 networks. This was particularly evident in its stablecoin marketcap.

The latter recently reached a new all-time high of 3.28 billion. Base’s stablecoin marketcap experienced exponential growth between March and June. It continued to grow despite market headwinds in August.

Source: DeFiLlama

Stablecoin growth in DeFi usually accompanies robust utility. In the case of Base, the stablecoiin marketcap growth was accompanied by a surge in volume.

For perspective, the layer 2 network’s daily on-chain volume was below $50 million before March. However, daily volumes went over $600 million before the end of March.

Assessing the impact of Base stablecoin growth

Base has since then maintained healthy on-chain volume above $200 million even on the slowest Market days. This combination of stablecoins and robust volumes confirms the presence of  robust demand and utility.

Consequently, the network’s TVL has been on the rise. It currently ranks as number 2 in the list of top Ethereum layer 2s by total value locked.

Source: DeFiLlama

Base managed to achieve a TVL all time high of $1.77 billion during the same March-June period that the stablecoin marketcap went parabolic. Its TVL has since retraced slightly over the last few months and to a $1.51 billion press time level.

The TVL is more likely to be influenced by market volatility, which would explain the dips in TVL from its peak. The TVL growth also reflects the robust flow of value within the BASE network.

The Base layer 2 protocol backed its impressive growth with robust utility which is evident in user activity. According to DeFiLlama, Base concluded August with the highest recorded number of daily transactions.

Source: DeFiLlama

The network’s daily on-chain transactions peaked at 4.42 million TXs on 30 August. Zooming out reveals that the network experienced a surge in transactions from around mid-March.

On-chain activity has since been on a steady growth trajectory as underpinned by the transaction count.

Base is yet to roll out its own native token. However, would be one of the most anticipated airdrops if that were to happen. Meanwhile, the robust uptick reflects the state of the Ethereum ecosystem which is still highly active.