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October 15, 2024

Coinbase Ethereum Scaling Solution Primed To Become Largest Layer-2 Blockchain by End of 2024: IntoTheBlock

By Daily Hodl Staff

Market intelligence platform IntoTheBlock says Coinbase’s Ethereum (ETH) scaling solution is on track to become the largest layer-2 (L2) blockchain by the end of the year.

In a new report, IntoTheBlock says that key metrics indicate Base is experiencing exceptional growth this year.

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IntoTheBlock first looks at Base’s total value locked (TVL), the metric representing the amount of assets staked or locked in a platform.

“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. In September alone, Base saw an influx of roughly $700 million in TVL. If its current growth trend continues, it will likely be the largest L2 by year-end.”

IntoTheBlock also says that additional metrics indicate Base is outperforming other popular L2s, including Optimism (OP) and Arbitrum (ARB).

“TVL is not the only metric where Base has seen large gains relative to Optimism and Arbitrum. The network has already surpassed Arbitrum and Optimism on multiple other metrics that indicate users favor the L2 blockchain.

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  • Base transaction volume has surged in the past months, with it capturing 40-60% of all volume among the three L2 blockchains.
  • Since June, it has increased its dominance for total transactions for ETH addresses.
  • It is the only L2 among the three that has seen consistent growth in new adoption rate (the % of new addresses making their first transaction compared to all active addresses that day).”
Source: IntoTheBlock

IntoTheBlock concludes that Base is serving as a model that other crypto firms could follow.

“Base’s success marks just the beginning of a trend where more entities create their own blockchains to keep users within their product ecosystems. This movement is set to accelerate as modular blockchain solutions continue to simplify the process, enabling tailored infrastructures that meet specific user needs.” 

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