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Solana co-founder sees Base as key to Ethereum ecosystem

Solana co-founder sees Base as key to Ethereum ecosystem

GrafaGrafa2024/10/22 03:30
By:Isaac Francis

Anatoly Yakovenko, co-founder of Solana (CRYPTO:SOL), has highlighted the significance of the Layer 2 solution Base within the Ethereum ecosystem. 

According to Yakovenko, Base’s growing activity is essential to Ethereum’s (CRYPTO:ETH) continued growth. 

He emphasised, “Essentially, without Base, the Ethereum ecosystem would currently be underwater.” 

Base has seen a notable increase in user metrics, such as Active Addresses, Transaction Count, and Total Value Locked (TVL). 

The network’s integration with Coinbase’s extensive user base has driven demand, along with the rising popularity of meme coins like MOG (CRYPTO:MOG) and BRETT (CRYPTO:BRETT)

These factors have played a crucial role in the network’s rapid growth. 

DefiLlama data indicates that Aerodrome Finance has been a major contributor to Base’s TVL increase, adding around $1.36 billion to the network. 

This rise has further solidified Base’s position as a significant player among Ethereum’s Layer 2 solutions. 

Despite these achievements, on-chain analyst Lily Liu raised some concerns. 

She noted that Solana’s monthly active addresses are four times higher than Base’s, suggesting that current metrics may not fully represent ecosystem activity. 

Liu suggested using different colors for EVM and non-EVM metrics to provide clearer insights. 

Additionally, Liu pointed out that NEAR Protocol (CRYPTO:NEAR) surpasses Base in active addresses, with 31 million reported monthly. 

The recent challenges Ethereum faces, such as inflationary supply and declining revenues, have heightened the relevance of Layer 2 solutions like Base. 

Since the Dencun update, Layer 2 networks have grown into independent ecosystems with their own communities and activities, proving their importance to Ethereum’s market position.

At the time of writing, the Solana price was $167.46, and the Ethereum price was $2,652.29.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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