Coinbase’s Base Blockchain Nears Arbitrum in Ethereum Layer 2 Competition

• Base, Coinbase’s Layer 2 blockchain, is nearing Arbitrum’s total value locked (TVL), with $2.358 billion against Arbitrum’s $2.595 billion.
• Base’s unique synergy with Coinbase and Optimism drives DeFi adoption, enhancing user activity and attracting decentralized applications.
• With new features like cbBTC and custom gas payments, Base continues expanding its ecosystem and user engagement, contributing to its growth.

Coinbase’s Layer 2 blockchain, Base, is rapidly closing the gap with Arbitrum in total value locked (TVL), a crucial measure of decentralized finance (DeFi) platform success. According to IntoTheBlock, Base has been live for just over a year and is already on the verge of overtaking Arbitrum as the largest Ethereum Layer 2 blockchain by TVL. This indicates significant traction within the DeFi ecosystem and a notable rise in user adoption.

Growth Driven by Strategic Partnerships

Base’s rapid growth can be attributed to its strategic integration with Coinbase, the largest publicly traded U.S. crypto exchange. Besides, Base benefits from its alignment with Optimism, a leading Layer 2 technology provider, positioning it as a key player in the industry. Significantly, Coinbase’s extensive user base is providing an entry point for DeFi newcomers, encouraging decentralized applications to build on the Base platform. This has spurred an increase in transaction volume and, consequently, Base’s TVL.

Base Nears Arbitrum’s TVL

According to data from DefiLlama, Arbitrum currently holds $2.595 billion in total value locked. However, Base is quickly approaching this figure, with a TVL of $2.358 billion. This gap continues to shrink as Base’s ecosystem expands, driven by user adoption and innovative features.

One of Base’s recent innovations includes the introduction of cbBTC, a wrapped Bitcoin token that allows users to participate in the Ethereum and Base DeFi ecosystems. Additionally, Base now supports custom ERC-20 token payments for gas fees through Paymaster, increasing the utility of tokens like USDC. Hence, this expansion in user functionality strengthens Base’s competitive position in the Layer 2 landscape.

Caution in the Community

However, despite its growth, Base users should remain vigilant against potential scams targeting the platform. Recently, attackers have been attempting to compromise user wallets through malicious video conferencing software. To ensure security, Base users are advised to stick to trusted programs such as Meets, Zoom, or Teams.

As Base continues its ascent in the Layer 2 space, its innovative features and strategic partnerships are setting the stage for further growth, potentially positioning it to surpass Arbitrum shortly.