Coinbase's Base L2 Network Is on Track to Surpass Arbitrum as Ethereum's Top Layer 2 by TVL

Both L2 networks operate on the same ETH blockchain to facilitate faster and cheaper transactions. Now, Base's performance is getting better than that of Arbitrum.

Coinbase’s Base is set to overtake Arbitrum as the largest Ethereum Layer 2 (L2) network by total value locked (TVL), according to IntoTheBlock.

Both L2 networks operate on the Ethereum blockchain to facilitate faster and cheaper transactions. However, Base’s performance is outpacing Arbitrum, heating up the competition between the two L2 networks.

Over the past three months, Base has recorded the highest transaction count on any L2 network, amassing a total of 133,333,333 transactions. Arbitrum ranks second with 93,939,393 transactions.

Despite Arbitrum’s lead in terms of active addresses and TVL, Base’s rapid success is不容忽视.

According to IntoTheBlock, Base’s TVL currently stands at $2.358 billion, closing in on Arbitrum’s TVL of $2.595 billion.

With a difference of approximately $337 million, Base is positioned to potentially surpass Arbitrum as the largest Ethereum L2 network.

Base is an L2 blockchain network developed by Coinbase, which provides the platform with significant credibility and resources.

This L2 solution has gained notable traction due to its user adoption, transactions, and overall activity in the Ethereum blockchain ecosystem.

Base solves Ethereum scalability issues by facilitating faster and cheaper transactions. Notably, Base has been steadily gaining market share in this aspect while Arbitrum has seen little to no significant gain.

This Ethereum L2 network utilizes OP Stack, an open-source development platform for creating excellent compatibility and ease of transition for developers on Ethereum.

Base processes transactions using the “rollups” mechanism, which allows for combining multiple transactions simultaneously as a single batch for validation on Ethereum’s Layer-1.

This process makes Base unique and enables it to reduce costs and load on the leading Ethereum network.

Another benefit of operating on Base is interoperability. The platform integrates with multiple decentralized exchanges, NFTs, and DeFi platforms.

Due to its scalability, it also offers high-volume transactions with efficiency. Being linked with Coinbase, the largest cryptocurrency exchange in the U.S., also makes Base easily accessible.

These factors collectively make Base an exciting option for those wishing to perform transaction fee-heavy work.

Despite Base’s rapid growth, Arbitrum remains a strong competitor with a solid user base and an established reputation.

Both L2 networks are expected to continue facing off in the coming months as they vie for dominance in Ethereum’s Layer 2 ecosystem.

Meanwhile, the Ethereum L2 ecosystem is expanding with new entrants into the community. After Base and Arbitrum, Unichain is the new L2 network designed as a home for DeFi and links across chains.

It is a cost-effective protocol, ensuring approximately 95% lower transaction costs than Ethereum L1. The platform will have decentralized validation networks so that nodes can verify blocks.

We can expect more Layer-2 scaling solutions to emerge in the Ethereum ecosystem, with many blockchain experts claiming that new entrants will address liquidity fragmentation and poor user experience.

As Uniswap notes, the L2 will facilitate seamless access to swapping, no matter which chain users are on.

Crypto asset investing involves a high degree of risk. Crypto owners can lose their entire investment due to inherent risks. Past performance is not indicative of future results.

Make sure to conduct your own research before investing in cryptocurrencies.

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