Coinbase-backed Base L2 Network Emerges Top in Capital Inflows YTD

As a seasoned crypto investor with a knack for spotting promising projects, I can confidently say that the surge of the Base network has caught my attention like never before. With its impressive growth and strategic backing by Coinbase Global Inc, it’s hard not to see the potential in this L2 scaling solution.


In the surge of Ethereum‘s (ETH) ecosystem, driven significantly by institutional investors, the Layer 2 (L2) scaling solution spearheaded by the Base network, has been instrumental in making scalable and secure smart contracts more accessible to all. Notably, the Base network, a L2 scaling solution supported by Coinbase Global Inc (NASDAQ: COIN), has expanded to lead the Decentralized Finance (DeFi) landscape in recent times.

Key Metrics of Base Network

Based on information from Artemis Terminal’s market analysis, it appears that the Base network has taken the lead among smart contract networks in terms of the largest inflows of cash over the past year. Over the course of the last 11 months, the Base Network has recorded approximately $6.3 billion in cash inflows and about $3.8 billion in outflows, resulting in a net inflow of around $2.5 billion.

As a researcher, I’ve been comparing the financial inflows and outflows of two networks – Solana (SOL) and Arbitrum (ARB). In the case of Solana, the network has seen a net cash inflow of approximately $3.9 billion year-to-date (YTD), with a total cash outflow of roughly $2.2 billion. This results in a net flow of around $1.7 billion inflowing into the Solana network.

Daily transactions on the primary network have been skyrocketing, exceeding 8 million with no signs of network congestion or downtime. Over the past month, an impressive $2 billion has flowed into the Base network from other systems, demonstrating increased user interest.

Can you feel it?

It’s @base era

— David Tso (dave.base.eth) 🛡️ (@davidtsocy) November 28, 2024

The worth of assets secured within the Base network’s Base network now exceeds $3.55 billion (Total Value Locked), with a stablecoin market capitalization of over $285 million. Over the past 24 hours, there have been approximately one million active addresses on the network and a generated revenue of around $753 million.

On the Base network, you’ll find some prominent Decentralized Finance (DeFi) platforms such as Aerodrome Exchange, Uniswap (UNI), Morpho Blue Lending, and Aave V3, along with several other notable ones.

Expected Impact

The substantial rise of Base protocol over the past year, positioning it as a leading Ethereum L2 network, has played a significant role in Coinbase’s recent success. In Q3, Coinbase unveiled the Sun project, renaming Base protocol to make user interaction more intuitive. Within just two months following its launch, the renamed platform (Base protocol) recorded over 450k registrations for its names.

As a crypto investor, I’ve noticed that the base network boasts incredibly low transaction fees, typically under a penny. This affordability has ignited a surge in on-chain activity. Notably, this spike has been advantageous for Coinbase Global, as they collect these fees.

For example, the most popular meme cryptocurrencies on the Binance network boast a total market value exceeding 2.8 billion dollars and an average daily trading volume of approximately 310 million.

In recent times, there’s been significant growth due to the assumption that Coinbase might add Base meme coins to its platform.

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2024-11-29 14:42