Base, launched by Coinbase in August 2023, became one of the most successful Layer 2 chains in Ethereum’s ecosystem — remarkable for a chain with no native token and no immediate monetization plan. Built on the OP Stack (Optimism’s open-source rollup framework), Base benefited from Coinbase’s distribution (100+ million verified users), brand trust, and aggressive ecosystem development.
Base’s growth accelerated dramatically after EIP-4844 reduced its costs. By mid-2024, Base consistently ranked among the top chains by daily active addresses, transaction count, and TVL growth rate. The chain attracted a distinctive mix of activity: memecoin trading (largely driven by Pump.fun-style launchers and the Degen token), social applications (Farcaster Frames and friend.tech initially drove early adoption), and DeFi protocols (Aerodrome became the dominant DEX, with massive TVL growth).
Coinbase’s strategy with Base was multi-layered. The chain generated revenue from sequencer fees (the entity that orders and submits Base transactions to Ethereum earns the difference between L2 fees collected and L1 data posting costs). More importantly, Base created an ecosystem where Coinbase could offer onchain products to its massive user base without dealing with the regulatory complexity of listing new tokens on its exchange. Users could access DeFi, NFTs, and memecoins through Base without these assets being “listed” on Coinbase.
The “Onchain Summer” campaign (multiple editions) drove developer and user adoption through grants, hackathons, and partnerships. Smart Wallet (Coinbase’s account-abstracted wallet) and easy fiat on-ramps lowered barriers for new users. Base’s success validated the thesis that a major company could meaningfully drive blockchain adoption by combining familiar interfaces with genuine decentralized infrastructure. The chain’s growth from zero to billions in TVL within a year was one of 2024’s most significant crypto stories.
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