In a major development in the world of cryptocurrency, Coinbase’s Layer 2 blockchain, Base, is on track to surpass Arbitrum as the largest Ethereum Layer 2 platform by total value locked (TVL). TVL is a key metric in the crypto space that measures the total value of digital assets locked or staked on a particular decentralized finance (DeFi) platform.
According to data from IntoTheBlock, Base has been operational for just over a year and is quickly catching up to Arbitrum in terms of TVL. 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.”
Base’s unique position in the Layer 2 industry is attributed to its partnership with Coinbase, one of the largest cryptocurrency exchanges, and Optimism, a leading L2 technology stack. Coinbase’s status as the largest publicly traded U.S. crypto exchange provides a gateway for introducing users to DeFi through Base. This collaboration encourages decentralized applications to build on Base, leveraging Coinbase’s products and user base to attract non-DeFi users.
As a result, Base has experienced a surge in user adoption and transaction volume, driving up its TVL. Currently, Arbitrum’s TVL stands at $2.595 billion, while Base is closing in with a TVL of $2.358 billion.
In recent news, Coinbase launched its version of wrapped Bitcoin, cbBTC, in September, allowing users to utilize Bitcoin in DeFi ecosystems on the Ethereum and Base networks. Additionally, Paymaster now enables users to pay for gas with custom ERC-20 tokens on Base, enhancing token utility and app engagement.
However, amidst the positive developments, the Base community has been warned about a new scam circulating. Fraudsters are urging users to download video conferencing software containing malware that compromises devices and wallets. Users are advised to exercise caution and stick to reputable programs like Meets, Zoom, or Teams.
Overall, Base’s growth and innovation in the Layer 2 space signify its potential to become a dominant player in the DeFi ecosystem. Stay tuned for more updates on Base’s progress and advancements in the crypto industry.