Base Leads L2 Transactions and Profits

Base has emerged as a resilient contender, swiftly rebounding from its previous challenges marked by the BALD episode and now riding the momentum created by Notably, the daily transactions on Base now outpace Layer 2 giants like Arbitrum and Optimism.


Source: Twitter (@DeFiyst)

However, one must approach this with a discerning eye: as some have noted that bots on could be skewing these numbers, inflating transaction counts. The most profitable bot generated 132K transactions in just 13 hours.

Diving deeper into Base’s metrics, its TVL has surged this month, reaching a commendable ~$190M, of which only a sliver ($7.2M) can be attributed to This growth is attributed to DeFi protocols on Base, ushering in attractive yield farming opportunities. The lion’s share of this TVL is held by two decentralized exchanges, BaseSwap and SwapBased, boasting $56M and $20M, respectively.

From a profitability standpoint, Base is carving out an enviable niche for itself. The platform has generated profits to the tune of $1.72M this month, eclipsing the combined profits of both Arbitrum and Optimism. This outperformance is due to Base’s profit margin of 67%, starkly higher than Arbitrum’s 33% and Optimism’s 30%.


Source: Twitter (@jamesjho_)

The rationale? Base commands a higher average transaction fee, a strategy that might continue to pay off, given its relationship with Coinbase. By leveraging this to transition CEX users directly to Base, they could sustain these premium fees. While the revenue implications might be modest at present, it’s an aspect investors should monitor, especially in relation to Coinbase’s earnings.

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I am not familiar with Base's ecosystem at all, but are there any projects on Base that interest/excite you? Based on your post, my impression is that Base is taking off because there are new farms there - and I am worried that will lose its leads once those farms dry up.

Other than, I don't think there's too much innovation on Base at the moment. The new farms will definitely help bootstrap its ecosystem and gain new users and builders.

I definitely agree that once incentives end, mercenary capital will migrate to the next better farm. But I think Base has an edge by onboarding new CEX users through Coinbase, which can allow for more sticky capital and users vs. other chains.

Thats a great point tbh. I had not considered the advantage that Coinbase would give to onboarding users to Base!