As a seasoned researcher with a penchant for exploring the intricacies of blockchain technology, I’ve been consistently impressed by Coinbase Global Inc’s L2 solution, Base. Despite not being a technological trailblazer per se, its rapid growth and market share are nothing short of phenomenal.
In comparison to various other secondary blockchain networks on Ethereum‘s layer-2, the one developed by Coinbase Global Inc (NASDAQ: COIN) has shown exceptional performance. Among the swiftly expanding L2 blockchains, it distinguishes itself as a trailblazer in technology, albeit not necessarily leading the pack. The underlying code of this blockchain was adopted from Optimism and has proven to be particularly beneficial for Base, specifically the OP Stack framework, which streamlines the process of creating new L2 networks.
Base Controls 18% of L2 Market Share
In just one year since its launch, Base has experienced rapid growth and now occupies the second spot among leading L2 networks, as ranked by L2Beat. Out of the 74 active L2 networks currently operating, it holds approximately 18% of the market share. Arbitrum One maintains the top position with a commanding 40%.
According to this measure, Base has outperformed numerous other networks prior to their launch, including Starknet, Polygon, and Optimism themselves. Notably, in August, Coinbase’s L2 chain attracted many users despite lacking a native token, unlike its peers.
According to DeFiLlama’s data, the Base network’s Total Value Locked (TVL) stood roughly at $1.51 billion, while its stablecoins market capitalization was approximately $3.19 billion. Additionally, there were around 839,000 active addresses on the network at that point in time.
Over the same timeframe, Arbitrum (ARB) held approximately $2.7 billion in assets secured, with a stablecoin market capitalization of roughly $4.55 billion. Furthermore, it served around 413,000 daily active users. In a parallel context, Optimism displayed a total value locked (TVL) of about $620 million and a stablecoin market capitalization of approximately $1.31 billion. Additionally, it catered to around 67,000 active wallet addresses.
It’s important to mention that Aerodrome Finance makes up a substantial share of the Total Value Locked (TVL) for Base. This decentralized platform contributes approximately $592 million to the TVL of Coinbase L2.
All in all, the American digital currency trading platform has experienced significant achievements with Base. In their Q2 2024 financial results report, they surpassed analysts’ expectations by recording a total income of approximately $1.45 billion, which was originally projected to be $1.4 billion.
More Improvements to the Base Network
Over the past few months, I’ve been instrumental in enhancing our Base network. Notably, last month, we witnessed the robust introduction of a notable L2 solution, marking its debut in the onchain identities sector with the launch of “Basenames.
These Basenames are constructed utilizing Ethereum Name Service (ENS) framework. The goal is to enable users to streamline their intricate hexadecimal wallet addresses into easily readable, human-friendly names. It’s worth noting that this name service isn’t novel within the crypto realm as other protocols have also adopted similar systems.
It’s much like having different sections on a website, where an ENS domain owner can establish and oversee numerous additional names or sections under their main name. In their announcement, Base revealed that Basenames play a significant role in their ecosystem. They explained that this tool will simplify user interactions within the blockchain environment.
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2024-09-10 12:09