Coinbase’s Layer-2 Ethereum scaling solution Base has seen its revenue top the $15 million mark in January after growing by 593% year-over-year, with data showing that the surge comes amid a decline in daily transactions.
According to data from cryptocurrency tracker GrowThePie, Base recorded revenue of $15.58 million over the past month, far above the revenue recorded by other Ethereum scaling solutions. Arbitrum One, according to the data, while Optimism saw $680 million in revenue,
Notably both Base and Arbitrum One saw a sudden revenue spike early in February, to the point that their daily revenue topped the $1 million mark for the first time ever in a single day at the same time.
Despite the growing revenue, data from crypto terminal Artemis shows that daily transactions on the network have been slowly declining, from a peak above 13 million early in the year to now stand around 8 million. Late last year, it’s worth noting, the network saw significant stablecoin inflows.
Base’s Daily Active Addresses Decline
While revenue for Coinbase’s Layer-2 network grew, the number of daily active addresses has been steadily declining to the point several days have recorded less than one million daily active addresses.
For context, the network saw a surge in the metric earlier in the year to a 3 million high as trading volumes were growing. Total value locked on the network is also dropping, with DeFiLlama data showing its down from a near $4 billion record to around $3 billion at the time of writing.
The largest protocols by total value locked on the network remain decentralized exchanges Aerodrome and Uniswap with $900 million and $458 million respectively. These are followed by lending protocols Morpho, Moonwell, and Aave.
