Coinbase's Base Outperforms Rivals' TVL
The crypto exchange's Ethereum layer 2 reaches milestone by surpassing $4 billion in total value locked
April 8, 2024 05:04 AM
Reading time: 1 minute, 37 seconds
TL;DR Coinbase's Ethereum layer-2 blockchain, Base, has witnessed a 13.2% increase in its total value locked (TVL), surpassing $4 billion for the first time. This growth has positioned Base as a formidable competitor in the Ethereum scaling space, overtaking its closest rivals in TVL and transaction counts over the past week.
Coinbase's Ethereum layer-2 blockchain, Base, has made headlines by achieving a new milestone in its total value locked (TVL), which has soared by over 13.2% in the past week, reaching an impressive $4.15 billion.
This surge in TVL includes $1.45 billion of canonically bridged value and $2.7 billion in natively minted assets, according to data from L2BEAT updated on April 7.
Base's Competitive Edge
This remarkable growth has not only solidified Base's position in the market but also allowed it to surpass its competitors. Currently, Base ranks as the third largest Ethereum layer 2 by TVL, outpacing the fourth-place rival Blast by approximately $1.4 billion.
However, it still trails behind second-place Optimism and the leader, Arbitrum, by $3.5 billion and $14.6 billion, respectively. Notably, Base is the only layer 2 among the top 5 by TVL to have posted a gain in the past week.
The scalability solution's TVL boost is accompanied by an unprecedented surge in activity, with its 30-day transaction count reaching 50.34 million.
This figure surpasses both Ethereum's and Arbitrum's transaction counts, marking a significant achievement for Base. Moreover, Base's average daily transactions per second (TPS) has seen a 29.7% increase over the week, averaging 35.19 TPS, which is higher than the combined TPS of both Arbitrum and Ethereum.
Challenges and Opportunities
Despite its success, Base has also faced challenges, particularly in the form of increased scam activities. The network experienced an 18-fold increase in successful phishing scams from January to March, with $3.35 million stolen last month alone. Such incidents highlight the importance of enhancing security measures to protect users' assets.
The future of Ethereum layer-2 solutions like Base looks promising, with analysts from VanEck estimating that the network's scaling ecosystem could reach a $1 trillion market capitalization by 2030.
Ethereum's ongoing development efforts, such as the March 13 Dencun update, aim to further improve the blockchain's capacity for processing layer-2 transaction data, potentially benefiting layer-2 solutions like Base.
"Base's total TVL at $4.15 billion, including $1.45 billion of canonically bridged value and $2.7 billion in natively minted assets."
