TVL on Layer-2 Base Hits $114 Million
Over $110 million in cryptocurrency assets have been transferred to Coinbase's layer-2 solution, Base.
TVL on Layer-2 Base Reaches $114 Million
According to data from L2beat, $114 million in cryptocurrency assets have been transferred to Base, a layer-2 solution launched by Coinbase in March this year. This figure represents a nearly 97% increase from the previous week. Additionally, the daily transactions per second (TPS) on Base saw a dramatic 405% increase over the same period.
The deployment of Base is part of what Coinbase describes as the "Onchain Summer," an event featuring major names like Coca-Cola and OpenSea collaborating with the crypto exchange for on-chain events. A few weeks after moving to mainnet, Base officially launched its ETH bridge for users last week.
The mainnet, initially limited to builders, went live on July 13. At that time, assets had to be manually bridged to this layer-2 via contracts provided by the project. However, a report by Vishal Chawla from The Block indicated that many users were willing to transfer assets using proxy contracts or other bridges to trade memecoins. This led to increased network activity.
Challenges and Financial Performance
Despite its promising start, Base faced some issues post-mainnet launch, the most notable being the BALD memecoin rug pull and an attack on the LeetSwap exchange.
Nevertheless, Coinbase's Ethereum scaling solution has been crucial in the company's profit growth strategy. Specifically, Base generated between $13,000 and over $430,000 in a single day on July 29-30. Compared to its predecessors, Arbitrum and Optimism, Base has held its own, even outperforming them on certain days.
In its recent Q2 earnings report to shareholders, Coinbase highlighted Base as an initiative demonstrating the company's ambition to expand beyond traditional trading activities. The report stated:
"Base is an investment in blockchain infrastructure that we hope will reduce fees and increase transaction speeds – two key attributes that will unlock new use cases over time."
Coinbase's total revenue for the last quarter reached $707.9 million, surpassing analyst expectations.
