Coinbase’s Layer-2 blockchain Base has been seeing the total number of daily active addresses on it plunge over the last few weeks, to the point the figure is now down 63% from its October peak of 2.4 million.
According to data from Artemis, Base has been seeing less than one million daily active addresses over the last few days, and recorded a total of 877.800 active addresses on December 2.
It’s important to note that a single address on a blockchain does not necessarily correspond to an individual user. Blockchain networks allow anyone to generate as many addresses as they wish and often experts recommend users create various addresses to help preserve their privacy.
Accurately estimating the number of active users on such a blockchain becomes nearly impossible. While one address may not represent one user, there’s also the consideration that some individuals may never create their own on-chain addresses and may instead rely on addresses provided by cryptocurrency exchanges.
Base’s other metrics show growth
While Base’s daily active address figures have been dropping from their peak, the total value locked (TVL) on its decentralized finance applications has been steadily growing, from around $2.5 billion on October 20 – the day the network recorded its daily active address high – to around $3.6 billion at the time of writing.
Similarly, decentralized exchanges’ trading volumes grew from around $709 million on October 20 to now stand at $1.6 billion, down from an all-time high of $2.2 billion recorded on November 13.
Fees on the network, and subsequently the revenue being generated by decentralized applications built on top of it, have also been growing steadily, showing that capital is still flowing onto Base.
The network has nevertheless been facing outflows to Solana, along with most other smart contract platforms. Data shows that over the last three months, $15 million flowed from Base to Solana, a figure dwarfed by the $1.86 billion that moved from Ethereum to SOL over the same period.
