- Advertisement -

  • Base Network’s TVL surged to $557 million in a week, driven by a 472% increase in native USDC minting and tokenized ETFs.
  • Despite the TVL growth, daily active users dipped, raising concerns about sustainability and retaining the user base.

Total Value Locked (TVL) on the Base Network has reached an impressive milestone, surging to $557 million in a remarkable uptick over the past week, according to L2 Beat. The surge in TVL can be primarily attributed to the significant increase in the minting of the native stablecoin, USDC. Backed Finance’s recent entry into the network with tokenized BlackRock exchange-traded funds (ETFs) has further fueled this growth.

Over just seven days, Base Network’s TVL has skyrocketed by more than 25%, solidifying its dominance over other Ethereum Layer 2 networks. This significant growth has allowed Base Network to surpass zkSync Era, a network utilizing Zero-Knowledge Proofs technology for verification, which now stands at $436 million after witnessing an 8% decrease in TVL.

Surge in USDC Minting

The Base Network, currently in Stage 0 regarding feature maturity, has witnessed a remarkable increase in the minting of native USDC tokens. This particular stablecoin, issued by Circle, experienced an astonishing growth rate of over 470%, with the minting reaching an impressive 159 million in a single day.

This surge in USDC minting is a promising sign for Base Network’s TVL, especially after its first major outage on September 5, which lasted 43 minutes.

Landmark Introduction of Tokenized ETFs on Base

In a significant development, Base, an Optimistic Rollup project incubated by Coinbase, introduced its first tokenized security in the past week. Backed Finance, renowned for its expertise in tokenizing real-world assets, issued bIB01, a tokenized version of BlackRock’s iShares bond ETF, on the Base Network.

Backed Finance highlighted its dedication to creating tokenized Real World Assets (RWAs) seamlessly integrating with developers’ applications. The platform commended Base Network for prioritizing developers’ needs by providing cost-effective, developer-friendly on-chain development.

Fluctuations in Daily Active Users

Despite the impressive surge in TVL, Base Network experienced a decline in its daily active users. On a specific day, the count dropped to 49,662, following a count of 68,957 just a day earlier, as reported by DUNE analytics. This dip comes after a period during which Base consistently maintained over 100,000 users for most of August, surpassing 145,000 daily active users on August 21.

While the growth in Base’s TVL is undoubtedly noteworthy, it is crucial to address concerns regarding its sustainability. A significant portion of this growth is attributed to the minting of USDC, raising valid questions about its long-term viability. Moreover, the recent dip in daily active users has raised doubts about Base Network’s ability to retain its user base over the long term.

>> Buy Ethereum (ETH) quickly and securely with PayPal, credit card or bank transfer at eToro. Visit Website <<

An analysis of the TVL breakdown reveals the substantial impact of native USDC minting on the Base Network. Natively minted tokens on the network experienced a staggering 467.42% increase. However, it is worth noting that on September 29, the TVL on the Base Network experienced a sharp decline of 16.92%.

This decline was primarily attributed to the burning of bridged USDC tokens, as reported by Wu Blockchain. The TVL dropped from 160 million to 29.84 million in just one day.

Taking the Long-Term View

While Base Network’s TVL has undergone a remarkable 25% growth in the past seven days, it is essential to adopt a long-term perspective. The chart indicates that the TVL is approaching previous levels. The network has attracted users, notably with the influence of projects like Friend.tech. On August 11, Coinbase’s Base Network recorded over 136,000 daily active users.

Nevertheless, Base Network is not immune to challenges. It faced its first outage on September 5, lasting nearly 43 minutes, emphasizing the importance of continuous improvement and reliability.

Best Crypto Exchange for Everyone

  • Invest in Ethereum (ETH) and over 200+ cryptocurrencies on America’s most trusted crypto exchange.
  • Buy Ethereum (ETH) easily and with low fees via PayPal and credit card.
  • Enjoy super-low trading fees and access to more than 400 trading pairs.
  • Coinbase is regulated by the SEC and FINRA in the USA, and by CySEC and FCA in Europe.

100,000,000 Users

Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.

Credit: Source link

Leave a Reply

Your email address will not be published. Required fields are marked *