TVL surges 68% as Base becomes the largest Ethereum L2 network?

Source: Blockchain Knight

Base is an Ethereum second-layer expansion (L2) solution launched by Crypto asset exchange Coinbase. It has seen a surge in activity over the past two months and is now vying for the top spot in the Ethereum ecosystem.

Data from Into TheBlock shows thatBase's trading volume has increased significantly over the past two months, accounting for 40% to 60% of all trading volume, surpassing Optimism and Arbitrum.

The latest data in the past 24 hours shows that Base seems to have made a leap and successfully consolidated its leading position in total value locked (TVL).

Base is a second-layer network launched by Coinbase on Ethereum, designed to provide a secure, low-cost, and developer-friendly way to build on-chain. Since its inception, Base has quickly established a foothold in the Crypto asset market and formed a strong market fit.

Although Base has only been online for about a year, its appeal has become increasingly apparent, especially in the past two months.

Data from Into TheBlock shows that Base’s TVL has been growing continuously since the total value locked TVL on the network recorded $1.41 billion on September 7.

Since then, Base’s TVL has surged by an impressive 68%.

As reported by Into TheBlock, the massive growth in TVL has positioned Base as a strong competitor to Arbitrum, which was previously the network with the largest TVL in Ethereum L2.

One notable change is that Arbitrum’s TVL has fallen by 0.33% in the past 24 hours, while Base has increased by 1.3% in the same period.

As a result, Base’s TVL has reached a new all-time high of $2.37 billion in the past 24 hours, narrowly surpassing Arbitrum’s TVL of $2.35 billion.

In addition to the growth of TVL, Base's rise is also accompanied by the expansion of its stablecoin market value.

As of now, Base's stablecoin market value has risen to US$3.758 billion, with USDC accounting for a dominant position of 92.82%.

However, Base still lags behind Arbitrum in stablecoins, whose stablecoin market value is US$4.428 billion.

Base's TVL growth is due to the steady growth of active addresses and adoption.

From the Into TheBlock (ITB) chart below, we can see the difference in Base's activity with Arbitrum and Optimism.

It is worth noting that ITB data shows that the average daily active address number is 2,188,900 in the past seven days.

This figure comes against the backdrop of a surge in transaction volume since July 2024. From January to August 2024, the daily transaction volume of the Base network has been below 1 million, highlighting a sharp drop in user participation.

In comparison, Arbitrum has an average of 512,900 active addresses, while Optimism has an average of 405,600 active addresses over the past seven days.

At this rate, Base TVL will continue to grow as activity increases. This continued growth could allow Base to surpass Arbitrum in terms of stablecoin market capitalization.