Another significant milestone has been achieved by Base , an Ethereum Layer 2 (L2) scaling solution. It is now fully available on xPortal. This allows users to buy, transfer, swap, and spend assets with an improved efficiency that promises to take on-chain applications to a whole new level. For us at Base, it is just another step—which we are very happy to have taken—toward our mission of providing a secure, low-cost, and developer-friendly Layer 2 that allows users everywhere to interact effectively with on-chain applications. The ongoing surge in Base adoption has propelled the network’s economic activity to new heights, with the GDP relating to transaction fees hitting an all-time high of 7x. This is a new way of looking at how efficient and effective the Base blockchain is. For every dollar in transaction fees, our users directed seven times as much capital toward on-chain services. Base’s Economic Growth: GDP to Transaction Fees at Record Levels One of the most prominent indicators of Base’s success is its quarterly GDP relative to transaction fees, which soared to about 7x in Q4. This metric points to Base users significantly boosting the network’s economic activity—which, in our view, is a pretty darn good sign. If you think about it, as an end user, what could be a better indicator than the network itself being significantly more economically productive than it was just a few months (or years) prior? This means that for each $1 spent on transaction fees, users were able to produce $7 worth of on-chain economic activity. This is fundamentally different from traditional blockchain systems, where high gas fees tend to keep users away. Base is able to achieve a 7:1 activity-to-spending ratio because it can maximize user capital efficiency. This makes Base a much more desirable venue for both retail users and developers. Furthermore, GDP for the overall Base quarterly was $181 million, which serves as a clear signal of the growing adoption of the Base platform. While this number comes in substantially below Ethereum’s $1.1 billion figure, the momentum behind Base suggests it could continue closing that gap as Layer 2 solutions gain even greater adoption. The Role of Decentralized Exchanges (DEXs) in Base’s Growth Base’s economic expansion is being driven primarily by capital formation, which is the fundamental use case for crypto. Not surprisingly, decentralized exchanges have been the key engine for Base’s GDP. Two platforms in particular—Aerodrome Finance (@AerodromeFi) and Uniswap (@Uniswap)—have accounted for almost all the economic activity on Base over the past year. This trend spotlights the emerging dominance of DeFi on Base, with users actively trading, providing liquidity, and participating in various yield-generating activities. With each passing day, as more users and more liquidity migrate to Base, the network is positioning itself as a serious contender for the DeFi crown, right alongside Optimism, Arbitrum, and several other low-cost, high-speed Ethereum alternatives. Base’s ecosystem is increasingly home to decentralized exchanges. That’s a sign of something much larger afoot: the broader market trend of migrating from Ethereum to alternatives that offer efficiency and cost-effectiveness. And Base is a clear L2 standout in the work of doing just that. Gas fees on Ethereum aren’t dropping anytime soon. And those that pay them are gaining a staggering amount of value and a staggering number of traders. How Base Stacks Up Against Ethereum’s GDP Despite substantial progress on the part of Base in the sphere of economic activity, when it comes to overall GDP, Ethereum remains the commanding leader. For the most recent quarter, the figures show that Ethereum’s GDP reached $1.1 billion, well ahead of Base’s $181 million. But it’s worth noting that Base is just on its steep growth curve, and with the combination of its architecture and the economic incentives it provides, it could some day challenge Ethereum’s dominance among Layer 2 solutions. For additional context, at the zenith of 2021’s bull market, Ethereum was enjoying a run rate of about $10 billion in GDP. We’re using this as a historical benchmark to reference the potential scale and scope of on-chain economic activity, with the belief that Base’s increasing adoption might push it to much higher GDP figures in future market cycles. As institutional and retail interest in Layer 2 solutions ramps up, Base’s offerings make it a top contender for future DeFi expansion and wider blockchain adoption. Base is efficient, low-cost, and user-friendly—making it a perfect fit for the next wave of decentralized finance and blockchain application development. Base’s Future Outlook: What’s Next? The most recent developments concerning Base—its total integration with xPortal and its unprecedented high GDP concerning transaction fees—portend a very bright future for the network. In this heightened search for Layer 2 solutions that are both low-cost and fast, it seems that the upward trend of Base is set to continue. Key elements that could turbocharge the adoption of Base include: 1. More DeFi and NFT Projects—The unceasing expansion of decentralized exchanges, lending protocols, and NFT marketplaces on Base will fuel even more economic activity. 2. Enhanced Developer Incentives – Base is an ecosystem friendly to developers; the more of them we can attract to launch creative, new applications, the more robust and resilient our ecosystem becomes. 3. Institutional interest – If institutional investors start putting money into Base-based projects, it could see an even sharper increase in its GDP. 4. Network Congestion Ethereum – The more congested and expensive Ethereum’s mainnet becomes, the greater the demand for efficient L2 alternatives like Base. Base, with its strong grounding in DeFi, a burgeoning user base, and efficient transaction fees, may just be the most serious contender yet for the new alt-L1 throne. Its blueprint for what a blockchain can and should be offers a compelling argument for why Layer 2s don’t have to be terrible. Conclusion: Base’s Expansion Marks a Major Milestone in Layer 2 Growth xPortal now has Base available in full. Moreover, its GDP-to-transaction fee ratio was recently set at a record high, which makes it safe to say that Base influences the Layer 2 ecosystem more and more each day. The influence is not happening in a vacuum, either, as Base is still part of the Ethereum blockchain, which remains the leader in Web3 economic activity. Base, targeting user adoption, developer interest, and capital accumulation, has the potential to become one of the most used Layer 2 solutions and to redefine the future of blockchain transactions. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: leungchopan/ 123RF // Image Effects by Colorcinch
