Decrypting DeFi is Decrypt’s DeFi email newsletter. (Art: Grant Kempster)
Whether you want it or not CoinbaseThe “Onchain Summer” campaign appears to have been a major marketing win for the company.
Or more specifically, for the company’s popular Layer 2 solution, Base.
Research by CoinGecko shows that Base was the fastest Layer 2 network, hitting 1 million addresses and hitting that milestone in just 11 days.
Heavyweights like Arbitrum and Optimism took an order of magnitude longer, hitting the million address mark in 303 and 191 days, respectively.
Although Base brings together major brands to launch the network — including Coca-Cola, Showtime, and Atari — most of the network’s activity revolves around fairly perennial crypto activity.
From meme coins to Twitter knockoffs, people are taking the plunge and dabbling in the everyday degeneracy of cryptocurrencies. This summer, tokens such as BALD, COIN, and BASED dominated attention on the network.
For example, after less than a day, BASED had already reached a market capitalization of 291 million US dollars. Before the developers behind the project increased liquidity, BALD — presumably named after Brian Armstrong’s hairless noggin — was up more than 3,000% on July 31.
Then came Friend.tech, the tokenized version of Twitter that courted both OnlyFans creators and crypto degenerates.
These crypto-native activities also bring in a lot of money for Base. The network’s total revenue since its inception has been $4.9 million.
Cumulative gains for base network activity. Source: Sea Launch/Dune.
Elimination of fees for forwarding this activity to the ether On the mainnet, Base still has $3.3 million left.
Since the network launched its mainnet on August 9th, just 22 days ago, this is serious business. Before the official launch, people had already bridged funds, meaning earnings before August 9th.
For comparison, Arbitrum has generated $63 million in revenue (and just $16.5 million in profit) since its launch. Optimism generated $43 million in sales and $9.9 million in profits.
“On-chain data shows a slight downward trend in Base’s weekly profit margin percentage,” a spokesman for on-chain analyst group SeaLaunch told Decrypt. “However, even more than a month after launch, Base’s profit margin is well over 60% – which is significantly higher than the profit margins of other L2 rollups.”
But as long as Base memes keep flowing and players keep playing, there’s no limit to Coinbase’s latest on-chain experiment.
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