Base, the Ethereum layer 2 scaling solution from cryptocurrency exchange Coinbase, has seen a surge in activity in the past couple of months and is now seeking to take the top spot in the Ethereum ecosystem.
In an interesting development revealed by data from IntoTheBlock, transaction volume on Base increased significantly during this time frame, accounting for around 40% to 60% of the total volume to overtake Optimism and Arbitrum. Now, the latest data over the past 24 hours shows that Base has made a leap to solidify its leadership position in terms of Total Value Locked (TVL).
Base rises to become the largest L2 network in Ethereum
Base operates 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 inception, base She quickly proved herself Within the cryptocurrency market, achieving strong market alignment.
Although it has only been airing for about a year, Base’s appeal has become increasingly apparent, especially over the past couple of months. Data from IntoTheBlock reveals that Base’s total value locked (TVL) has seen steady growth since September 7, when TVL on the network was recorded at $1.41 billion. Since then, Base’s TVL has risen by a staggering 68%.
According to IntoTheBlockThis significant rise in TVL has positioned Base as a formidable competitor to Arbitrum, which was previously the largest Ethereum layer 2 network in terms of TVL. In a notable turnaround, 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 over the past 24 hours, narrowly surpassing Arbitrum’s TVL of $2.35 billion.
In addition to TVL’s growth, Base’s rise was accompanied by the expansion of the market capitalization of its stablecoin. As of the time of writing, Base’s stablecoin market cap has risen to $3.758 billion, with USD Coin (USDC) accounting for 92.82%. However, Base still trails Arbitrum in stablecoins, which has a stablecoin market cap of $4.428 billion.
A base prepared for continued growth
Base’s TVL growth has been supported by steady growth in active titles and adoption rate. Looking at the IntoTheBlock (ITB) chart below, we can see the difference in activity of Base compared to Arbitrum and Optimism. Notably, data from ITB estimates the number of daily active addresses at an average of 2,188,900 in the past seven days.
This figure comes in light of the massive increase in transactions since July 2024. In context, it is worth noting that the core network recorded less than one million daily transactions from January to August 2024, highlighting the significant shift in user interaction.
In comparison, Arbitrum has an average active address of 512,900, while Optimism has an average of 405,600 addresses over the past seven days.
At this rate, the base TVL level is set to continue to grow as activity increases. This sustained growth could see Base overtake Arbitrum as well in terms of stablecoin market capitalization.
Featured image from Coinbase, chart from TradingView