- Base has the potential to surpass Arbitrum as the top Ethereum L2 network.
- Base’s total value locked (TVL) has reached $2.358 billion.
- Arbitrum is still the top Ethereum L2 solution due to its solid user base.
Coinbase’s Base is on track to exceed Arbitrum as Ethereum’s Layer 2 (L2) network by total value locked (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. The competition between these two Ethereum L2 networks is heating up. It is worth watching how this rivalry unfolds in the coming months, as it will be interesting.
Can Base Surpass Arbitrum?
Recently, IntoTheBlock posted on X to reveal the potential of Base’s Total Value Locked (TVL) to replace Arbitrum as the largest Ethereum L2 network. Right now, Base’s TVL stands at $2.358 Billion. It has the potential to close the gap by expert estimation.
Data from DeFiLlama has revealed Arbitrum’s total value locked is at $2.595 Billion. It is approximately $337,000,000 ahead of Base. Arbitrum is at the top of the list due to its number of active addresses.
Base L2 Network | Source: Medium
Base L2 network recorded the highest transaction count in the past three months. Arbitrum’s reach is high. However, the rapid success of Base suggests its potential to become a significant competitor.
IntoTheBlock mentioned in their X’s post: “Base, the L2 blockchain from Coinbase has been live for just over a year, is close to surpassing Arbitrum as the largest Ethereum L2 by TVL.”
Advantages Of Using Base Network
Base is developed by Coinbase, which provides significant credibility and resources. This L2 solution has gained notable traction due to its user adoption, transactions, and overall activity in the ETH blockchain ecosystem.
Base network solves Ethereum scalability issues by facilitating faster and cheaper transactions. Also, Base has been steadily gaining market share, while Arbitrum has seen little to no significant gain.
This Ethereum L2 network utilizes OP Stack, an open-source development platform. It is used to create excellent compatibility and ease of transition for developers on Ethereum.
Base processes transactions using the “rollups” mechanism, facilitated by the Base network RPC. This 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. Interoperability is another benefit of operating on Base. The platform supports many decentralized exchanges, NFTs, and DeFi platforms.
Due to its scalability, it also offers high-volume transactions with efficiency. Base remains easily accessible because of its linkage with Coinbase, the largest cryptocurrency exchange in the U.S.
These factors 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.
Ethereum’s Layer 2 Ecosystem
The Ethereum L2 ecosystem consists of various scaling solutions to enhance the network’s scalability and efficiency. 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 Ethereum’s ecosystem. Many blockchain experts claimed that new entrants will address liquidity fragmentation and poor user experience.
Uniswap noted that the L2 will facilitate seamless access to swapping, no matter which chain users are on.
Disclaimer
Investing in crypto assets 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.
