Base on Coinbase Set to Surpass Arbitrum as Ethereum’s Top Layer 2

Base Closing the Gap with Arbitrum

According to IntoTheBlock, Base has been live for just over a year and is rapidly closing the gap with Arbitrum. The report states:

“Base, the L2 blockchain from Coinbase that has been live for just over a year, is close to surpassing Arbitrum as the largest Ethereum L2 by TVL.”

While Base is still in its early phases, it holds a unique position in the Layer 2 industry thanks to its strategic synergy with Coinbase, one of the largest cryptocurrency exchanges, and Optimism, a leading L2 technology stack.

Why Base is Gaining Traction

Coinbase ranks as the largest publicly traded U.S. crypto exchange, and Base serves as an entry point for introducing these users to DeFi. This strategic position encourages decentralized applications to build on Base, leveraging Coinbase’s existing products and user base to access a new pool of non-DeFi natives.

As a result, Base has seen a surge in user adoption and transaction volume, contributing to its total value locked (TVL).

Current Total Value Locked (TVL)

According to DefiLlama, Arbitrum’s total value locked (TVL) is currently $2.595 billion, while Base’s TVL is rapidly closing in at $2.358 billion.

Recent Developments on Base

• cbBTC Launch: In September, Coinbase debuted its version of wrapped Bitcoin, cbBTC, following a teaser of this WBTC alternative in August. The cbBTC token launched on both the Ethereum and Base networks, allowing users to utilize Bitcoin in their respective DeFi ecosystems.
• New Paymaster Feature: Users can now pay for gas with custom ERC-20 tokens on Base. This functionality increases token utility, facilitates app engagement, and allows users to purchase gas with USDC or custom tokens rather than ETH.
• Security Warning: There is a new scam circulating within the Base community. Attackers are requesting users to download video conferencing software that contains malware, compromising devices and wallets. Users are advised to remain cautious and stick to known programs like Meets, Zoom, or Teams.

Conclusion

As Base continues to grow and innovate, it stands poised to become a significant player in the Ethereum Layer 2 landscape, potentially overtaking Arbitrum in the near future. The combination of its strategic partnerships and increasing user engagement positions Base as a promising platform for DeFi users.