Many would agree that the Base blockchain is one of the leading Layer-2 (L2) solutions out there today. Despite being late to the Layer-2 game, Base L2 has grown tremendously thanks to its backing from Coinbase and Ethereum Virtual Machine (EVM) compatibility that significantly lowers the barrier to entry for beginners and crypto natives alike.
Curious as to how you can hop on the Base bandwagon and not miss out on the L2 hype? With top Base chain crypto projects like Aerodrome and Degen available, here's how you can gain exposure to the Base ecosystem despite there not being a Base native token.
Before jumping into the Base ecosystem and its popular decentralized applications (DApps), let's first cover what Base L2 is and explore the interest surrounding the fastest growing L2 so far.
TL;DR
Base is a rapidly rising L2 blockchain built on Optimism, known for its rapid transactions and affordable gas fees.
Backed by Coinbase, Base benefits from a large user base and streamlined onboarding process.
Base boasts a user-friendly experience and developer-friendly environment, attracting both newcomers and seasoned builders.
While Base itself lacks a native token, you can gain exposure to the Base ecosystem's growth through projects like Aerodrome (AERO) and Axelar (AXL).
Base's future hinges on user adoption, developer interest, and the overall DeFi/Web3 landscape. Continued innovation could make it a top L2 solution.
What is Base blockchain?
Base is an Optimistic Rollup L2 built on the OP Stack, which is a modular framework developed by Optimism. Optimistic Rollups essentially bundle transactions together offchain, significantly reducing gas fees and addressing the relatively slow transaction speeds and high gas fees on the Ethereum mainnet. They then submit these bundles to the Ethereum mainnet for final settlement, inheriting Ethereum's security.
Why is the Base network so popular?
While it's easy to chalk up Base's rise to its Coinbase affiliation, there's certainly more than meets the eye when it comes to the rising popularity of Base. Using available OKLink data on Base and Ethereum, here are some compelling reasons:
Low gas fees: As an L2, Base gas fees cost a fraction of what they would on the Ethereum mainnet, making it much more affordable to interact with DApps.
Fast transactions: With Base's transactions per second (TPS) being two times higher than Ethereum's TPS, Base boasts quicker transaction speeds that allow users to interact with DApps without worrying about congestion.
Adopting Ethereum's security: Being an EVM-compatible L2 solution, Base processes transactions offchain for faster speeds and lower fees while relying on the Ethereum mainnet for final settlement and security. As such, Base leverages Ethereum's robust security infrastructure.
Developer-friendly: Building on Base is simple for developers thanks to its EVM-compatiblity. This allows developers to easily port existing Ethereum applications, further growing and expanding the Base ecosystem.
Coinbase integration: Thanks to its connection with Coinbase, Base has access to Coinbase's established user base. This integration ultimately streamlines the new user onboarding process and lowers the barrier to entry for anyone remotely interested in exploring DeFi.
Why does Base have no native token?
Despite being one of the most popular L2 networks in recent memory, there's no direct way to trade off Base's success. This is because Base itself doesn't have a native token. This might seem counterintuitive, considering competing L2s rely on their tokens to fuel network activity and incentivize ecosystem participation. By choosing to operate without a native Base token and adopting ETH as its native gas token, Base takes a strategic approach with several key benefits:
Streamlined user experience: Base prioritizes user experience by eliminating the need for users to acquire and manage an additional token. Many crypto users are already familiar with ETH and its gas fees on the Ethereum mainnet. By using ETH for gas on Base, users don't have to learn a new system, lowering the barrier to entry for newcomers and fostering a smoother overall experience.
A focus on developer adoption: The lack of a native token simplifies things for developers building on Base. They don't need to integrate a brand new token into their applications, allowing them to focus their resources and efforts on creating innovative DApps that enrich the Base ecosystem. This streamlined approach can potentially attract a wider pool of developers, further accelerating growth and innovation within the Base ecosystem.
Decentralized governance through OP: By not having a native token, Base essentially adopts the OP token for governance since Base is built on the OP Stack. As a result, holders of OP tokens have a say in the future direction of the entire Optimism stack and are involved in a form of decentralized governance of Base.
How to trade off Base's success: top projects on the Base ecosystem
While Base itself doesn't have a token, it does have a vibrant and growing ecosystem of projects that are blossoming on its platform. From memes to DEXs, these top Base ecosystem tokens are something to look out for if you're expecting Base adoption to skyrocket in the near future.
Aerodrome (AERO)
Aerodrome is one of the most popular DEXs built on Base, and it facilitates liquidity via automated market-making and token swaps. Utility-wise, the AERO token serves several purposes, the most important of which involves platform governance. In short, AERO holders can participate in voting on key protocol decisions and influence the direction of Aerodrome after locking in their AERO tokens and receiving veAERO in return. As a result, these voters receive 100% of the fees and incentives generated by the specific pools they’ve supported and voted for.
By offering a combination of governance rights, liquidity rewards, and potential fee discounts, the AERO token plays a vital role in attracting and retaining users within the Aerodrome ecosystem. The platform's unique model further incentivizes long-term participation through a system where veAERO holders capture 100% of the fees and incentives generated by their supported liquidity pools. Such an alignment of interests ensures a healthy Aerodrome ecosystem that thrives on user participation.
Brett (BRETT)
Looking to inject some humor and a touch of internet culture into your Base experience? Look no further than Brett, the self-proclaimed "OG meme token" on the Base L2 network. Pegged as Pepe the frog's best friend on Base Chain, Brett fosters a community of meme enthusiasts and aims to become a central hub for meme lovers within the Base ecosystem. Although memecoins like Brett don't have direct utility within the Base network, BRETT thrives on its strong community spirit and potential for future integration with other DApps in the Base ecosystem.
Spectral (SPEC)
Spectral is a platform designed to integrate autonomous on-chain agents with the Web3 ecosystem through innovative artificial intelligence (AI) and machine learning (ML) technologies. Spectral offers Spectral Syntax, a proprietary tool that allows users to create onchain AI agents by translating natural language intents into executable code. Additionally, Spectral Nova is another product that provides ML inferences directly to smart contracts. In essence, it incentivizes top data scientists and ML engineers to build models that output inference feeds to solve predictive and ML problems for Web3 applications. In the long run, Spectral plans to expand the capabilities of blockchains by making them more responsive and intuitive.
Axelar (AXL)
As an official interchain platform seamlessly integrated with the Base blockchain, Axelar acts as an important bridge, enabling smooth communication and data exchange between Base and its array of interconnected blockchains. This fosters a more interoperable future for the Base ecosystem, empowering developers to create innovative DApps that can interact with this vast network of external chains. Imagine a cross-chain DeFi protocol built on Base, leveraging Axelar to connect with lending pools and liquidity sources on other blockchains. This unlocks a wider range of financial instruments and opportunities for users. Axelar's secure cross-chain communication, achieved through a dynamic set of validators in its Proof of Stake network, makes sure of the safe and reliable transfer of assets and data. Ultimately, Axelar's seamless interoperability with Base makes it a valuable tool for developers seeking to build the next generation of interconnected and innovative applications within the Base ecosystem. Its token, AXL, fuels Axelar's secure cross-chain communication, acting as a governance token and payment for transaction fees associated with cross-chain communication on the Axelar network.
Optimism (OP)
While not exclusive to Base, the OP token plays a crucial role in the Optimism ecosystem, which underpins Base. OP grants governance rights to the Optimism protocol, allowing token holders to vote on key upgrades and proposals. This fosters a decentralized decision-making process for Optimism, which ultimately benefits Base as well. Since Base adopts Optimism's technology for faster and cheaper transactions, a well-governed Optimism with strong community involvement translates to a more robust foundation for Base. Additionally, some speculate that future iterations of Base might even incorporate interoperability features with Optimism, further tightening the link between the two ecosystems and potentially increasing the utility of the OP token within the broader Base sphere.
Final words and next steps
The Base network has emerged as a major player in the L2 race, offering a user-friendly and developer-friendly experience with its EVM compatibility and lack of a native token. While you can't directly invest in Base's success through a token, the ecosystem boasts a vibrant collection of projects with their own tokens, like Aerodrome (AERO) for DEX functionality and governance, or Axelar (AXL) for seamless cross chain communication.
As the Base ecosystem continues to grow and innovate, these project tokens offer exciting opportunities for potential traders looking to capitalize on the future of Base. The platform looks to be on track for a continued rise as more users explore the power and flexibility Base offers.
Interested in finding out more about other L2s? Check out our guides to Blast and Mantle Network.
FAQs
Base is popular due to its user-friendly experience, low gas fees, fast transactions, developer-friendly environment, and connection to the established Coinbase user base.
While you can't directly trade Base itself since there's no native Base token, you can trade projects built on the Base ecosystem that have their own tokens. Some examples include Aerodrome (AERO) and Axelar (AXL).
Aside from the main benefit of capitalizing on the growth of the Base ecosystem, trading and owning Base ecosystem tokens gives traders access to functionalities and governance rights within specific projects.
The future of Base depends heavily on factors like user adoption, developer interest, and the overall growth of the DeFi and Web3 sectors. Continued innovation and a vibrant ecosystem could see Base become a leading L2 solution.
Speculation exists that Base might incorporate interoperability features with Optimism, allowing applications to seamlessly interact between the two ecosystems. This could further enhance the utility of the OP token within Base.
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