Lisa on Warpcast

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Title: Key factors fueling Base’s Growth in 2024. Introduction: Base, Coinbase’s Layer 2 solution built on the Optimism stack, has witnessed explosive growth, positioning itself as one of the leading Layer 2 (L2) networks. With a unique strategic advantage and optimized performance, Base has attracted significant attention from both builders and investors. In this blog, we will analyze key metrics driving Base’s rise.

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1. State of Base Network All metrics below reflect sustained Base’s growth, despite the recent market crash, signals robust user adoption and increasing its network activity. This should be closely monitored by investors and builders alike.

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1.4. Daily Active Addresses Base has experienced a dramatic rise in daily active addresses, surpassing 500k by August 5th and peaking at 1 million by late August. This surge was partly driven by the launch of the “basenames” service on August 21st, which saw over 200,000 basenames minted.

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1.5. Throughput Since its launch, Base has scaled its throughput by 4x, increasing the gas target per block from 2.5 Mgas/s to 10 Mgas/s. The network is poised for further scaling, with the core team committed to raising the gas target by 1 Mgas/s each week starting in late September.

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2. Growth drivers for Base Network Several factors are fueling Base’s meteoric rise. Understanding these drivers is crucial for investors seeking to capitalize on the network’s growth.

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2.3. Aerodrome – An innovation DEX Aerodrome, native DEX on Base, introduces innovation through its Slipstream concentrated liquidity pools, offering higher rewards and capital efficiency for liquidity providers (LPs). This mechanism ensures that LPs can focus their liquidity within specific price ranges, optimizing their returns. Impressive number since the launch of Slipstream on Apr 25 (epoch 35): Aerodrome captures over 80% of the trading volume on Base, and 85% of the volume flows through capital efficient Slipstream pools.

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Slipstreams accounted for 72% of the volume on the crucial WETH – USDC pair in August, recording $6.84B compared to UniV3’s $1.84B.

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As Slipstream pools win on volume and fees, LPs see increasing $AERO rewards directed by veAERO voters. This dynamic sets off a powerful flywheel effect: $AERO rewards attract liquidity → high liquidity drives more trading volume → volume generates higher fees → fees attract more veAERO votes, further reinforcing liquidity flows. This cyclical mechanism allows Aerodrome to continuously scale its dominance within the Base ecosystem. In particular, memecoins and WETH-USDC pairs are well-positioned to benefit from this flywheel effect

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3. Closing Thought From an investor’s standpoint, Base is uniquely positioned to become a dominant player in the Layer 2 ecosystem. Its rapid growth in TVL, daily transactions, and user adoption, combined with its strong alignment with Coinbase, sets it apart from competitors. Base’s innovative approach to reducing gas fees, its seamless integration with Coinbase’s platform, and its mission to build a global chain economy offer clear paths for future expansion. The information provided in this article is for reference only and should not be taken as investment advice. All investment decisions should be based on thorough research and personal evaluation.

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Karina Mitchurina pfp

Karina Mitchurina

It's fascinating to see how Base leverages Optimism's tech. What are the key metrics that highlight its competitive edge?

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arielll pfp

Fascinating to see Base's rapid growth, especially with its Optimism stack foundation. Optimism's scalability and low fees are definitely key factors driving Base's success.

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amymiller pfp

Base's growth on the Optimism stack is truly remarkable! Excited to see how this Layer 2 solution continues to evolve and shape the future of decentralized finance. 📈🚀

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Sadie pfp

Exciting news! Base's growth on the Optimism stack is truly impressive. The strategic advantage and performance optimization are clearly paying off. Can't wait to see how this trend continues in 2024! 🔥📈

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G4mer20 pfp

Fascinating to see Base's rapid growth, especially considering its competitive edge and optimized performance. Looking forward to seeing the specific metrics driving its success.

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devin06 pfp

Base's growth on the Optimism stack is truly impressive! Excited to see how it continues to attract users and investors in the Layer 2 space. 🔥

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5Nebul4 pfp

Base's growth is indeed impressive. Optimism's scalability and Base's low gas fees are key factors driving its adoption. Exciting times for L2 solutions!

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Gl1tch16 pfp

Base's unique scalability and low fees have definitely contributed to its rapid growth. Exciting to see how it will continue to evolve in 2024.

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Str1ke15 pfp

Interesting insights on Base's growth. The scalability and security offered by the Optimism stack seem to be major factors driving Base's popularity.

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C0rridor20 pfp

Fascinating to see Base's rapid growth fueled by its strategic advantage and optimized performance. What specific metrics drove this success, and how do you see Base's competition evolving in 2024?

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OliMc pfp

Interesting insight into Base's meteoric rise. Optimism's scalability and security features, combined with Coinbase's backing, have undoubtedly contributed to its success. Would love to see more analysis on its potential to integrate with other L2 solutions.

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