The Ethereum-based layer-2 network, Base, has seen a significant spike in assets locked, rising by around 200% in the past month to exceed $3 billion, as per L2beat data.

Jesse Pollak, a key figure in Base, revealed that the network reached the $3 billion milestone shortly after surpassing $2 billion. Impressively, Base took merely 23 days to hit the $2 billion mark, significantly quicker than its journey to the first billion in 203 days.

Additionally, data on the chain indicates that the growing Total Value Locked (TVL) aligns with Base's expanding user base. According to the Dune analytics dashboard compiled by Watermeloncrypto, Base now boasts over 5 million daily active users, generating a total revenue surpassing $36 million.

As a result, experts anticipate that Base's expanding footprint will pave the way for more businesses to venture into on-chain development. Ryan Watkins, from Syncracy Capital, envisions a future where enterprises recognize the lucrative potential of Ethereum rollups like Coinbase, catalyzing more on-chain innovation.

Factors Behind Base's Momentum

Several factors have contributed to Base's remarkable growth, notably the surge in meme coin activity and the introduction of novel products.

The recent uptick in memecoin traction on Base has led to increased liquidity and positive market sentiment, with speculation rife that these assets could drive the next wave of adoption.

Despite experiencing higher network fees compared to rival layer-2 solutions, Base adjusted its gas fee target to 3.75 mgas/s, boosting capacity by 50%, as reported by CryptoSlate. This adjustment sought to manage the surge in memecoin transactions.

Furthermore, Base has become a focal point for crypto developers launching new products on the layer-2 platform, fostering further adoption and usage.

In a recent development, Base welcomed Degen, one of the pioneering layer-3 networks, to its ecosystem on March 28. This move marks a new phase in scaling solutions, with Degen settling on L2s like Base for faster transactions, paving the way for an innovative on-chain internet.

Notably, Coinbase's initiative to develop a smart wallet that operates seamlessly on the layer-2 platform without the need for traditional private keys or seed phrases could channel the exchange's extensive user base to Base, potentially driving further growth.

Coinbase's strategy to incentivize developers through grants is expected to foster a robust builder culture within the network, as elaborated by Pollak. The gas grants will be offered upfront, with a clear path to scaling, while the builder grants will primarily be retroactive based on the positive impact on the ecosystem, aligning incentives for sustainable growth and innovation.