Coinbase's recent launch of its layer 2 network, Base, has brought significant activity to the cryptocurrency ecosystem, including both positive engagement and unfortunate incidents involving bad actors. The introduction of Base coincided with Coinbase's Onchain Summer fest ival, a three-week event to celebrate the network's launch, which drew attention from a diverse range of users, brands, and entities.
According to Dune Analytics, more than 700,000 new users have joined the Base network since its launch, with a total of $242 million transferred to the platform as of August 16. The network experienced its peak on-chain activity on August 10, with over 1 36,000 daily active users. DeFiLlama reported that this activity generated substantial fees, totaling $2.8 million, and the total value locked (TVL) reached $170.5 million.
Coinbase's Base network has attracted major brands like Coca-Cola, which launched its own line of non-fungible tokens (NFTs) on the platform. In addition, crypto-native organizations have embraced the network; decentralized derivatives protocol Synthetix announced its deployment on Base , receiving unanimous approval from its governing DAO Spartan Council. Notably, Friendly.tech, a decentralized social network allowing users to tokenize their connections, gained traction on the platform, amassing around 7,736 ether in transaction volume since its August 11 launch.
Music NFT platform anotherblock also unveiled on Base, featuring exclusive on-chain versions of electronic music producers Boys Noize and Laidback Luke. Moreover, Trust Wallet and Fireblocks, two prominent players in the crypto space, have extended support for the Base Network since its public launch.
Amidst the excitement and growth, Base Network has also faced negative attention from malicious actors. On August 14, RocketSwap, a major decentralized exchange, reported a breach resulting in the theft of approximately $865,000 from the protocol. Subsequently , crypto lender SwirlLend executed an " exit scam," moving significant amounts of cryptocurrency from Base and Linea, followed by money laundering through the Tornado Cash crypto mixer. These incidents highlight the challenge of security in the emerging decentralized landscape.
While the Base Network launch has showcased significant enthusiasm within the cryptocurrency community, it has also attracted some controversy. A memecoin named "BALD," inspired by Coinbase CEO Brian Armstrong, experienced an 85% value drop on July 31 after developers suddenly withdrew $1.9 million in liquidity. Additionally, Base's prominent decentralized exchange, LeetSwap, announced a breach in some liquidity pools, leading to a loss exceeding $600,000. These incidents underscore the evolving and complex landscape of decentralized platforms and the challenges they face in terms of security and user protection .
