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Base surges to $4b TVL, outshining Ethereum and Arbitrum in transactions

Coinbase’s Ethereum layer-2 blockchain, Base, has had a significant growth spurt, hitting over $4 billion in locked value for the first time.

Base’s total value locked is presently at $4.15 billion. Of that, $1.45 billion comes from assets transferred from Ethereum, and $2.7 billion is from assets created within the network.

Base network’s growth and market position

Base is now the third biggest of its kind, with a TVL of $4.15 billion. It’s doing better than Blast, in fourth place at $2.77 billion. But, it still has a way to catch up to Optimism and the market leader Arbitrum, with their TVL at $7.68 billion and $18.77 billion respectively.

Base is the only one of the top five Layer-2 networks to increase its total value locked over the past week. The TVL for Starknet and Optimism actually dropped by 9.0% and 8.2% respectively.

More importantly, there’s been a rise in the number of transactions on Base. Over the past 30 days, Base oversaw over 50 million transactions, more than Ethereum and its competitor, Arbitrum, which managed only around 40 and 38 million transactions, respectively.

Ethereum is working hard on improving its layer-2 features. A recent upgrade, known as Dencun, brought in EIP-4844, which cuts down transaction costs for not only Base but also other layer-2 solutions. Industry analysts predict this area could grow to a whopping $1 trillion market by 2030.

The Base network’s rise to prominence among Ethereum-based layer two networks is largely due to Coinbase’s support. Coingecko market data reveals that Coinbase Ventures has an overall value of approximately $69 billion.

This portfolio includes leading Web3 projects like Uniswap, Polygon, Near Protocol, Aptos, and Immutable, among others.

Several popular meme coins on the Base network include DEGEN, The Doge NFT, TOSHI, and Normie.

Layer 2 rivalry and growth prospects

There has been a major upswing in on-chain activity from the Ethereum-based layer two networks following last month’s Dencun upgrade. The healthy competition among Ethereum layer two solutions drives more users, effectively aiding web3 growth.

Web3 developers are encouraged to work on various Layer 2 solutions through grant programs. The Base network has done better than longtime Ethereum scaling solutions like Polygon and Arbitrum. According to market data from Defillama, Arbitrum has around $3.3 billion in TVL, and Polygon has around $1 billion in TVL.

The rivalry among Ethereum’s second-layer scaling solutions is expected to intensify as more real-world assets are turned into digital tokens.

Takeaway

The Base network, without its token, is important to Coinbase Global’s overall earnings. Recent data shows that COIN shares have surged over 51% in the past month, trading at around $254.34 on Monday.

The increased use of Ethereum’s layer two scaling solutions mainly benefits the value of Ethereum itself. Currently, the Ethereum network holds over $54 billion, and its stablecoins are worth more than $80 billion.

Because of this, the price of Ethereum has gone up about 6.9 percent in the last 24 hours leading into Monday, now trading at around $3,621.

Base is making great strides in the world of blockchain. It’s tackling common problems like limited tie-ins with exchanges, low cash availability, and long withdrawal waiting times. It shows us that quick, inexpensive transactions can happen.

Base beats Ethereum and Arbitrum in transaction numbers and in the swiftness of confirming those transactions. Plus, it’s fully compatible with the Ethereum Virtual Machine but cheaper.

Base is leading the way with its secure and easily adaptable blockchain solutions. Base ensures each transaction is valid by using an optimism-oriented rollup and a validator consensus.

However, it’s important to stay vigilant. Recently, there has been an alarming increase in successful phishing scams, costing users a whopping $3.35 million last month alone. So, while Base is making big steps forward, it’s critical to remain cautious and take measures to secure your digital dealings.

Given its current achievements in transactions and security, it’s exciting to see what Base will do next. This platform is streamlining the way for a smarter and safer blockchain future.