According to a crypto analyst, crypto Nova BASE TVL has made a significant splash, with its value surging by a staggering 1000% in just a few days. But what sets BASE apart from the myriad of other chains that have come and gone.
What you'll learn 👉
Why BASE TVL is Up: The Power of Incentivization
Despite boasting advanced technology, scalability, and low fees, many chains need to gain traction due to more incentivization. New chains often grapple with funding constraints, making attracting and rewarding developers challenging. Most talented developers, especially those just starting, require more capital or funding to work on a project with immediate revenue. The choice becomes clear: work on a chain with developer incentives or without.
For users, the decision is also straightforward. They will naturally gravitate towards a chain that hosts the most popular dApps, as evidenced by the popularity of Ethereum ($ETH). Users don’t create the chain’s value; the dApps and protocols do, and users follow suit.
BASE’s Unique Selling Proposition
Enter BASE. What sets it apart is its backing by Coinbase, making it the first layer 2 supported by a publicly traded company. This association not only provides BASE with more incentives and funding than most new chains but also ties it to Coinbase’s massive popularity among big capital institutions. Coinbase’s reputation as a trusted platform for fiat on and off-ramping for retail users further strengthens BASE’s position in the market.
Is BASE the most scalable, low-fee, revolutionary layer out there? Perhaps not. But then again, neither are $ETH, $BNB, $MATIC, or $ARB. From a developer’s perspective, the best chain isn’t necessarily the one with the most advanced technology but the most protocols and dApps.
The Future of BASE: A Sure Bet?
While BASE’s future looks promising, nothing in the crypto world is set in stone. However, its unique advantages give it a fighting chance of surviving and thriving in the long run. This doesn’t mean crypto enthusiasts should blindly invest in everything associated with BASE.
Like any other chain, it will have its share of unworthy tokens. But keeping a close watch could be beneficial. The first credible dApps on BASE could set the stage for its future, and early adopters might reap significant rewards, much like those who invested in #Arbitrum during its heyday.
In conclusion, while the crypto landscape is uncertain, BASE TVL seems poised to carve a niche with unique advantages and backing. Only time will tell if it manages to live up to the hype.
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