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.
IntoTheBlock says in a new report that key metrics show Base has experienced exceptional growth this year.
IntoTheBlock first checks the Total Value Locked (TVL) of the Base. This is a metric that represents the amount of assets staked or locked on the platform.
“Base is Coinbase’s L2 blockchain that has been running for just over a year and is on the verge of overtaking Arbitrum as the largest Ethereum L2 by TVL. In September alone, Base received approximately $700 million in TVL inflows. If current growth trends continue, it is likely to become the largest L2 by the end of the year.
IntoTheBlock also states that additional metrics show Base to outperform other popular L2s such as Optimism (OP) and Arbitrum (ARB).
“TVL is not the only metric where Base has seen significant gains compared to Optimism and Arbitrum. The network is already outperforming Arbitrum and Optimism on multiple other metrics that indicate users prefer L2 blockchains. Masu.
The underlying transaction volume has skyrocketed in the past few months, accounting for 40-60% of the total volume on the three L2 blockchains. Since June, the dominance of ETH addresses in total transactions has increased. Of the three L2s, it is the only one that has consistently increased its new adoption rate (the percentage of new addresses making their first transaction compared to all active addresses for the day). ” Source: Into the Block
IntoTheBlock concludes that Base serves as a model that other crypto companies can follow.
“Base’s success is just the beginning of a trend of more companies creating their own blockchains to keep users within their product ecosystem. Modular blockchain solutions continue to simplify the process and allow This movement will further accelerate as we enable customized infrastructure to meet the needs of
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