In a remarkable turnaround, the Base network has experienced a resurgence in user activity. The user retention has increased to 19%, signaling renewed interest and engagement within the platform.
Understanding Unique Resurgence With Base
Base, a layer 2 solution built on Ethereum, initially struggled to maintain user interest after its launch. However, recent developments have changed the narrative.
While many blockchain networks typically lose most of their users within the first few months, Base managed to maintain around 15% retention.
Something noteworthy is the shocking return of the users. Most chains see user numbers reduce to 3 – 8% after the initial month, but that is not the case with Base. Its users returned around the ninth to tenth month, increasing its retention to 19%.
One of the several factors contributing to this is the recent upgrades. The newly enhanced functionalities aim to improve user experience and transaction efficiency. Apart from this, Base has been keeping its users engaged with updates. A tweet noted, “Most chains bleed users; Base keeps them engaged.”
The recent rise in the price of Bitcoin and Ethereum is another factor contributing to the spike. Traders are exploring layer-2 solutions because of lower transaction fees and faster processing times.
Possible Market Shift on Base’s “Revival”
With more users returning to the platform, trading volumes are expected to rise, improving liquidity. This development may also attract more developers and projects interested in building on Base’s infrastructure.
For instance, Venice announced on Monday, January 27, 2025, that they launched on Base. Continuing this route may reinforce confidence in other layer-2 solutions and drive investment into similar projects.
As the cryptocurrency space continues to grow, this resurgence will offer fresh opportunities for traders.
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