Base, the Ethereum layer-2 scaling solution from crypto exchange Coinbase, has seen an increase in activity over the past two months and is now entering the top spot in the Ethereum ecosystem.
In an interesting development revealed by data from IntoTheBlock, the transaction volume on Base increased significantly during this time frame, as it captures approximately 40% to 60% of the total volume over Optimism and Arbitrum. Now, the latest data in the last 24 hours shows that Base now seems to have made a move to consolidate its leading position in terms of total value locked (TVL).
Base Surges To Become Ethereum’s Largest L2 Network
The foundation acts as a layer 2 network in Ethereum presented by Coinbase to provide a safe, cost-effective, developer-friendly way to build on-chain. Since its inception, Base it stopped quickly within the crypto market, drawing a strong market balance.
Although it’s been live for almost a year, the appeal of Base is becoming more and more apparent, especially in the last two months. Data from IntoTheBlock reveals that the total value of Base Locked (TVL) has experienced consistent growth since September 7, when TVL on the network was recorded at $1.41 billion. Since then, Base’s TVL has increased by 68%.
According to IntoTheBlockthis dramatic increase in TVL has positioned Base as a formidable competition to Arbitrum, previously the largest Ethereum layer-2 network in terms of TVL. In a notable change, while Arbitrum’s TVL is down 0.33% in the last 24 hours, Base has seen a 1.3% increase over the same period.
As a result, Base’s TVL reached an all-time high of $2.37 billion in the past 24 hours, slightly surpassing Arbitrum’s TVL of $2.35 billion.
In addition to the growth of TVL, the rise of Base has coincided with the expansion of the stablecoin market. As of the time of writing, Base’s stablecoin market cap has risen to $3.758 billion, while USD Coin (USDC) accounts for 92.82%. However, Base still lags behind Arbitrum in stablecoins, with a stablecoin market cap of $4.428 billion.
The Foundation is Ready to Continue Growing
Base’s TVL growth is supported by continued growth in active addresses and acquisition rates. Looking at the IntoTheBlock (ITB) chart below, we can see the difference in the performance of Base compared to Arbitrum and Optimism. Notably, data from ITB puts the number of daily active addresses at an average of 2,188,900 over the past seven days.
This figure comes as a result of the increase in transactions since July 2024. In context, it is important to note that the Base network recorded less than 1 million daily transactions from January to August 2024, highlighting a significant change in user engagement.
In comparison, Arbitrum has an average active address of 512,900, while Optimism has averaged 405,600 over the past seven days.
At this rate, the Base TVL is set to continue to grow as the business grows. This continued growth could see Base outpacing Arbitrum again in terms of the stablecoin market.
Featured image from Coinbase, chart from TradingView
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