Coinbase’s Base Set To Overtake Arbitrum To Become The Biggest Ethereum L2 Network
Base, the innovative layer-2 scaling solution developed by Coinbase, has recently garnered significant attention within the Ethereum ecosystem. Over the last two months, this platform has experienced remarkable growth in activity, positioning itself as a formidable contender for the top spot among Ethereum’s scaling solutions.
Base’s Meteoric Rise in Transaction Volume
According to data from IntoTheBlock, Base has seen a substantial increase in transaction volume, capturing between 40% to 60% of all volume in recent months. This surge has allowed it to surpass other prominent layer-2 networks such as Optimism and Arbitrum. Latest reports indicate that Base is now making significant strides towards securing its leadership position in terms of total value locked (TVL).
Base Surges to Become Ethereum’s Biggest L2 Network
Launched by Coinbase, Base operates as a layer-2 network on Ethereum, providing a secure, cost-effective, and developer-friendly environment for on-chain development. Despite being relatively new, Base has quickly found its niche in the crypto market, showcasing its potential and appeal, particularly in the last two months.
Data from IntoTheBlock highlights a consistent growth in Base’s TVL since September 7, when it was recorded at $1.41 billion. Since then, it has surged by an impressive 68%, underscoring its rapid ascent in the Ethereum ecosystem. This dramatic increase has positioned Base as a formidable rival to Arbitrum, which was previously the largest Ethereum layer-2 network by TVL.
In a noteworthy development, while Arbitrum’s TVL decreased by 0.33% in the past 24 hours, Base experienced a 1.3% increase during the same period. Consequently, Base’s TVL reached a new all-time high of $2.37 billion, narrowly surpassing Arbitrum’s $2.35 billion.
Base’s Expanding Stablecoin Market Cap
Apart from its impressive TVL growth, Base has also seen an expansion in its stablecoin market cap. At the time of writing, Base’s stablecoin market cap has grown to $3.758 billion, with USD Coin (USDC) accounting for a dominating 92.82% of this figure. However, Base still trails behind Arbitrum, which boasts a stablecoin market cap of $4.428 billion.
Base Poised for Continued Growth
The growth of Base’s TVL has been supported by a steady increase in active addresses and adoption rate. Data from IntoTheBlock reveals that, on average, Base has recorded 2,188,900 daily active addresses over the past week, highlighting its growing user engagement.
This surge in activity is particularly notable given that, from January through August 2024, Base’s daily transactions remained below 1 million. The dramatic turnaround in user engagement since July 2024 underscores the platform’s rising popularity.
In comparison, Arbitrum has an average of 512,900 active addresses, while Optimism stands at 405,600 over the same period. As activity continues to increase, Base’s TVL is expected to keep growing, potentially outpacing Arbitrum in terms of stablecoin market cap as well.
Conclusion
Base’s remarkable growth trajectory within the Ethereum ecosystem is a testament to its robust design and appeal. As it continues to attract more users and developers, its position as a leading layer-2 network seems ever more secure. With ongoing advancements and a strong foundation, Base is well-poised for sustained growth, setting the stage for its future success.
