Coinbase’s Layer 2 blockchain, Base, has marked a major milestone in its goal of surpassing Arbitrum. Both run on the same Ethereum blockchain, but Base’s performance stands out.
Does the base invert the arbitrum?
IntoTheBlock’s X post suggests that Base’s Total Value Locked (TVL) could soon replace Arbitrum as the largest Ethereum Layer 2. TVL represents the total assets held or locked within the blockchain and helps measure the popularity of a platform.
It also shows the level of usage in the decentralized finance (DeFi) space. As of this writing, Arbitrum’s total value is $2.595 billion, about $337 million more than Base, according to DeFiLlama data.
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Base’s TVL has reached a staggering $2.358 billion, and experts estimate that gap could close. What’s amazing about Base’s accomplishments is that the platform accomplished it in such a short amount of time.
As IntoTheBlock highlights, “Base, Coinbase’s L2 blockchain, has been up and running for just over a year.” Base has garnered considerable attention in terms of user adoption, transactions, and overall activity within the ecosystem. I am.
This marks an important development as Arbitrum continues to dominate the layer 2 solutions ecosystem. However, Base now has great potential to reverse that and establish itself as the leading Ethereum Layer 2 network with TVL.
Competitive Advantages of Base – Speed, Cost, and Scalability
Base’s appeal to users lies in its competitive trading fees and fast speeds. These two factors make Base an attractive option for those who want to perform tasks that incur transaction fees.
It leverages OP Stack, an open source development platform, to improve compatibility and ease migration for developers on Ethereum. Furthermore, the link between Base and Coinbase enables wide adoption in the blockchain ecosystem.
Process transactions using a “rollup” mechanism. This allows multiple transactions to be combined simultaneously as a single batch for validation at Ethereum’s Layer 1. This process makes Base unique and allows us to reduce costs and load on the main Ethereum network.
Overall, the developers designed Base to enhance the scalability and efficiency of the Ethereum blockchain. Interoperability is another notable benefit of running on Base.
The platform supports many decentralized exchanges, NFTs, and DeFi platforms. Additionally, L2 solutions provide a developer-friendly platform so innovators can run Ethereum apps seamlessly.
Base does not require developers to modify their code. Scalability allows you to efficiently execute large numbers of transactions. Plus, Base is partnered with Coinbase, the largest cryptocurrency exchange in the US, so you can still easily access it.
Expanding Ethereum L2 Ecosystem
The Ethereum L2 ecosystem continues to expand with new entrants to the community. Recent members include Unichain, a decentralized L2 designed as a hub for DeFi and chain-to-chain links. The Unichain testnet went live on October 10th, and the team said the mainnet would also go live soon.
Similar to Base, Uniswap designed Unichain to be a cost-effective protocol, guaranteeing transaction costs around 95% lower than Ethereum L1. The platform has a decentralized verification network that allows nodes to verify blocks.
Experts expect more layer 2 scaling solutions to emerge as the Ethereum ecosystem expands. They expect new entrants to effectively deal with liquidity fragmentation and poor user experience. Uniswap said L2 facilitates seamless access to swapping, no matter which chain a user belongs to.
