Base batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Base is an Ethereum Layer 2 (L2) offering a secure, low-cost, builder-friendly way for anyone, anywhere, to build onchain.

Coinbase team owns and governs the protocol. Coinbase is a public company and its investors include Andreessen Horowitz, Vanguard Group, ARK Investment Management, etc.

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Blockchains (L2)

Base

# Base Revenue Methodology

## 1. Overview

Base revenue represents the total fees collected by the Base protocol from users executing transactions on the network. Base is a Layer 2 rollup built on Ethereum, where users pay gas fees for transaction execution. The revenue metric treats all gas fees paid by users as protocol revenue, following the principle that transaction fees represent the protocol's core monetization mechanism. The calculation aggregates both Layer 2 execution fees and Layer 1 settlement fees that are characteristic of rollup architectures.

## 2. Data sources

- **Base transaction records**: Complete transaction data from the Base blockchain including gas usage, gas prices, and fee components
- **End-of-day ETH price feeds**: Daily ETH/USD price data for converting gas fees from ETH to USD
- **Token metadata**: WETH contract address reference used for price lookups, since Base inherits Ethereum's native token for gas payments

## 3. Step-by-step calculation

### Component A: Transaction data processing
- **Purpose**: Extract gas fee components from raw Base blockchain transactions
- **Logic**: Process all Base transactions to extract gas usage metrics including `gas_used`, `gas_price`, `l1_gas_used`, `l1_gas_price`, `l1_fee`, and `l1_fee_scalar`. Each transaction record includes both Layer 2 execution costs and Layer 1 settlement costs. The data uses Ethereum's WETH contract address as a reference since Base gas fees are paid in ETH
- **Key fields**: `gas_used` (L2 execution gas), `gas_price` (L2 gas price), `l1_gas_used` (L1 settlement gas), `l1_gas_price` (L1 gas price), `l1_fee` (direct L1 fee), `l1_fee_scalar` (L1 fee multiplier)

### Component B: Daily gas fee calculation
- **Purpose**: Calculate total daily gas fees by aggregating L2 and L1 fee components
- **Logic**: For each day, calculate L2 gas fees by multiplying `gas_used` by `gas_price` and converting from wei to ETH by dividing by 10^18. Calculate L1 gas fees using either the direct `l1_fee` field divided by 10^18, or by multiplying `l1_gas_used`, `l1_gas_price`, and `l1_fee_scalar` then dividing by 10^18. Use the coalesce function to handle different L1 fee calculation methods that may exist due to protocol upgrades. Sum L2 and L1 fees for each day to get total daily gas fees in ETH
- **Key fields**: `l2_gas_fee` (calculated L2 execution fees), `l1_gas_fee` (calculated L1 settlement fees), aggregated by day

### Component C: USD conversion and standardization  
- **Purpose**: Convert ETH-denominated fees to USD and apply business classification
- **Logic**: Convert daily gas fees from ETH to USD using end-of-day ETH prices. Apply business line classifications including `blockchain` as business line, `blockchains_l2` as market sector, and `blockchain` as business segment. Recast the chain identifier from `ethereum` (used for price lookup) back to `base` for proper protocol attribution
- **Key fields**: `fees` (USD-denominated total fees), `chain_id` (set to `base`), business classification fields

### Final aggregation
- **Combining components**: Total daily fees serve directly as daily revenue without additional aggregation
- **Currency conversion**: All gas fees are converted from ETH to USD using end-of-day exchange rates
- **Time aggregation**: Data is aggregated at daily boundaries using timestamp truncation to day level
- **Final calculation**: Revenue equals the sum of L2 execution fees and L1 settlement fees, converted to USD, representing the total fees collected by Base protocol from users for transaction processing and settlement

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

Base

Revenue

Revenue

Competitive landscape

Chain breakdown