Base, the Ethereum layer-2 scaling solution from crypto exchange Coinbase, has witnessed a surge in activity over the past two months and is now aiming for the top spot in the Ethereum ecosystem.
In an interesting development evidenced by data from IntoTheBlock, transaction volume on Base has increased dramatically within this time frame, taking approximately 40% to 60% of all volume, surpassing Optimism and Arbitrum. Recent data from the past 24 hours shows that Base now appears to have made the leap to consolidate its leading position in terms of total value locked (TVL).
Basis rises to become Ethereum’s largest L2 network
Base works as a layer 2 network on Ethereum launched by Coinbase to provide a secure, low-cost, developer-friendly way to build on-chain. Since its founding, Base has quickly established itself within the crypto market, creating a strong market fit.
Although it’s been live for about a year now, Base’s appeal has become increasingly apparent, especially in the past two months. Data from IntoTheBlock shows that Base’s total value locked (TVL) has seen consistent growth since September 7, when the network’s TVL was recorded at $1.41 billion. Since then, Base’s TVL has increased by a whopping 68%.
According to IntoTheBlockThis dramatic rise has positioned TVL Base as a formidable competitor to Arbitrum, previously the largest Ethereum layer-2 network in terms of TVL. In a notable shift, while Arbitrum’s TVL fell 0.33% over the past 24 hours, Base saw a 1.3% increase over the same period.
As a result, Base’s TVL reached a new all-time high of $2.37 billion in the last 24 hours, narrowly surpassing Arbitrum’s TVL of $2.35 billion.
In addition to the TVL growth, Base’s rise is accompanied by an expansion of its stablecoin market capitalization. At the time of writing, Base’s market cap for stablecoins has risen to $3.758 billion, with USD Coin (USDC) accounting for a dominant 92.82%. However, Base still trails Arbitrum in the stablecoin space, which has a stablecoin market cap of $4.428 billion.
Base ready to keep growing
Base’s TVL growth is supported by steady growth in active addresses and adoption rates. If we look at the IntoTheBlock (ITB) chart below, we can see the difference in Base’s activity compared to Arbitrum and Optimism. Data from ITB shows that the number of daily active addresses over the past seven days has averaged 2,188,900.
This figure comes in light of a massive increase in transactions since July 2024. For context, it’s worth noting that from January through August 2024, the Base network recorded daily transactions of less than 1 million , highlighting the dramatic turnaround in user engagement.
For comparison, Arbitrum has an average active address of 512,900, while Optimism has an average of 405,600 over the past seven days.
At this rate, base TVL will continue to grow as activity increases. This continued growth could also see Base surpass Arbitrum when it comes to stablecoin market capitalization.
Featured image from Coinbase, chart from TradingView