2024-01-19 03:10:15 ET

The latest stats show the decentralized finance (DeFi) world has recorded steady plunges in user activity. Layer2 network Base has lost its spot as a top ten chain following persistent TVL declines.

DeFi Llama data shows Base taking the 11th place, with its total value locked at $411.84 million. That follows significant dips in DeFi activity within the blockchain. For instance, Artemis shows that Base-housed decentralized exchanges saw a 28% dip in daily transactions since January 2.

Base DEX transaction volume stood at $23.34M on January 17, a notable dip from the January 2 level of $33.21.

Base user activity

Besides downtrends in the DeFi sector, Base blockchain noted substantial declines in user activity. New addresses transacting on the platform plummeted by 19% since December 23. That catalyzed a decrease in 24-hour completed transfers.

Meanwhile, Base saw amplified adoption following its August 2023 launch,

even outpacing

established Solana (SOL) in TVL. Intense activity on friend-tech, a decentralized social platform, propelled the L2 platform to new heights.

Nonetheless, friend-tech has seen severe dips in usage, affecting Base activity. The social network allows individuals to purchase and sell tokenized assets of cryptocurrency personalities. However, daily addresses buying shares of other users plummeted by 99% since October 22, 2023.

Declined transactions and daily users on Base triggered revenue and network fees slump. The network’s income plunged since early this year, losing 33% to January 17 levels of $7,000. Further, fees dipped to monthly lows of $40,000 on January 1.

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L2 blockchain Base losses top its 10 spot amid faded DeFi activity

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