Coinbase’s Layer 2 Solution Becomes the Leading Ethereum Network
Coinbase’s Layer 2 solution, Base, has rapidly ascended to become the top Ethereum Layer 2 network, achieving this remarkable milestone within just two years of its launch. With a Total Value Locked (TVL) of $2.49 billion, Base has overtaken Arbitrum, which currently stands at $2.41 billion. This impressive feat makes Base the fifth-largest blockchain by TVL, highlighting the growing interest in Coinbase as Ethereum seeks scalability solutions.
Factors Behind Base’s Success
The rapid adoption of Base can be attributed to several key factors:
- Utilization of Coinbase’s User Base: The launch of the network leveraged Coinbase’s vast existing user base.
- DeFi Protocols: Platforms like Aerodome attracted a significant influx of crypto traders to the Layer 2 network.
- cbBTC Launch: Coinbase’s Bitcoin product, cbBTC, is exclusively supported on Ethereum and Base, further driving network growth. Within a month of its launch, cbBTC achieved a market cap of $400 million, primarily sourced from the Base Layer 2 network.
Building Momentum with “Base Around the World”
To maintain its growth momentum and expand its global reach, Base has launched “Base Around the World,” a series of regional buildathons aimed at engaging developers worldwide. These events are supplemented by in-person meet-ups led by Base’s lead developer, Jesse Pollak.
The Shift Towards Ethereum Layer 2 Solutions
The growth of Base signifies a broader shift towards Ethereum Layer 2 solutions, which collectively boast over $15 billion in TVL. Notably, approximately one-third of this value is attributed to Base and Arbitrum, aligning with Ethereum’s ambitious scalability roadmap known as “Surge,” which aims for 100,000 transactions per second.
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