Unpacking the Surge of Base: Advancements, Drawbacks, and the Upcoming Blockchain Revolution

A futuristic cityscape showcasing skyscrapers bridge-like layers, indicative of a blockchain forest under a digital dusk sky lit by fast-paced streaks of light, symbolizing transactions. Mood: unexpected surge with an abstract 'friend.tech' market on the horizon, glowing. Be mindful of an underlying subtle shadow, hinting at potential risks.

Layers upon layers of blockchain tech pave the way to the future, with Base, a layer 2 blockchain buoyed by Coinbase surprising everyone. The last 24-hours saw an unprecedented average of 15.88 transactions per second (TPS) on Base, overtaking Ethereum and its layer 2 counterparts, Arbitrum and Optimism to the punch, a statistic brought to light by l2beat.

Rallying a whopping 156% in just weeks, Base’s newfound popularity stems from an investor surge, driven by the enticing allure of access to friend.tech. Consider this – a social market where one can trade in shares of public figures. The platform has witnessed over 100,000 users sign up in mere days of its release.

There is always a flip to the coin. The sustainability and long-term viability of friend.tech raise eyebrows. A platform dealing with shares of public figures may see regulatory hurdles, given the grey area it operates in.

The noteworthy part is that the total value locked (TVL) on Base isn’t trailing behind, despite a wider market dip. It springs up to a healthy $188 million, with the decentralized exchange BaseSwap and the cross-chain bridge Stargate drawing in the traffic, as per DefiLlama.

These pleasant winds have not gone unnoticed. Other protocols are taking swift steps toward Base. Consider the derivatives liquidity protocol, Synthetix, which wrapped up a governance vote to dock on this layer 2. Even the on-chain analytics firm Arkham Intelligence added support for Base, fresh off its launch.

It’s no wonder that more than 11.5 million transactions have graced Base since its mainnet’s inception just a month ago. But while Base’s growth is markedly impressive, one cannot turn a blind eye to potential scalability issues and the fact it is still very much in its infant stage.

While protocols hurriedly move to incorporate Base, the high TVL, and Linux-like transaction numbers, it’s important to bear in mind the inherent risks involved in such fast-paced growth. Nonetheless, the prospect of technological advancement in the blockchain space continues to captivate our attention and fuels the ongoing surge.

Source: Coindesk

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