Market intelligence platform IntoTheBlock claims that 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 key metrics point to Base seeing exceptional growth this year.
IntoTheBlock first looks at Base’s Total Value Locked (TVL), the metric representing the amount of assets staked or locked on a platform.
“Base, Coinbase’s L2 blockchain which has been live for just over a year, is poised to overtake Arbitrum as TVL’s largest Ethereum L2. In September alone, Base saw an inflow of approximately $700 million in TVL. If its current growth trend continues, it will likely be the largest L2 by the end of the year.
IntoTheBlock also reports that additional metrics indicate that Base outperforms other popular L2s, including Optimism (OP) and Arbitrum (ARB).
“TVL is not the only metric where Base has seen significant gains compared to Optimism and Arbitrum. The network has already surpassed Arbitrum and Optimism on several other metrics that indicate users favor the L2 blockchain.
- Core transaction volume has increased over the past few months, capturing 40-60% of all volume between the three L2 blockchains.
- Since June, it has increased its dominance in total transactions for ETH addresses.
- This is the only L2 of the three that has seen consistent growth in news adoption rate (the % of new addresses making their first transaction compared to all active addresses that day).
IntoTheBlock concludes that Base serves as a model that other crypto companies could follow.
“Base’s success marks just the beginning of a trend where more and more entities are creating their own blockchains to keep users within their product ecosystems. This movement is expected to accelerate as modular blockchain solutions continue to simplify the process, enabling tailored infrastructures that meet specific user needs.
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