In a major development, Coinbase’s Layer 2 blockchain, Base, is poised to surpass Arbitrum as the largest Ethereum Layer 2 by total value locked (TVL), a cryptocurrency metric used to measure total value measuring digital assets locked or staked on a specific decentralized finance (DeFi) platform.
According to IntoTheBlock, Base has been live for just over a year and the gap with Arbitrum is quickly closing.
“Base, Coinbase’s L2 blockchain that has been live for just over a year, is close to joining Arbitrum as TVL’s largest Ethereum L2,” IntoTheBlock wrote.
Base, Coinbase’s L2 blockchain that has been live for just over a year, is poised to surpass Arbitrum as TVL’s largest Ethereum L2. pic.twitter.com/2G4knGPx8F
— IntoTheBlock (@intotheblock) October 11, 2024
Although Base is still in its early stages, it holds a unique position in the Layer 2 industry thanks to its strategic synergy with Coinbase, one of the largest cryptocurrency exchanges, and Optimism, one of the leading L2 technology stacks.
Coinbase is considered the largest listed US cryptocurrency exchange and Base provides an entry point to introduce these users to DeFi. This in turn encourages decentralized applications to build on top of Base, as they can leverage Coinbase’s existing products and user base to access a new pool of non-DeFi residents.
So Base has seen an increase in user adoption and transaction volume, which has contributed to the TVL.
According to DefiLlama, the total value of Arbitrum (TVL) currently stands at $2.595 billion. Base’s Total Value Locked (TVL) is approaching this figure and now stands at $2.358 billion.
Basic news
In September, Coinbase debuted its version of the wrapped Bitcoin cbBTC, following a teaser of the WBTC alternative in August. The cbBTC token was launched on the Ethereum and Base networks, allowing users to use Bitcoin in their respective decentralized financial ecosystems.
In other news, Paymaster now allows users to pay for gas with custom ERC-20 tokens on Base. This functionality increases the usability of tokens, facilitates app engagement, and allows users to purchase gas with USDC or custom tokens instead of ETH.
As a heads up, there’s a new scam floating around the Base community. Attackers ask people to download video conferencing software with malware that compromises their devices and wallets. Users are encouraged to exercise caution and continue using familiar programs such as Meets, Zoom or Teams.
