The Ethereum (ETH) network has remained the undisputed web3 leader, with over $69 billion in total value locked (TVL) and more than $103 billion in stablecoins market cap, majorly due to the significant development of its layer-two (L2) scaling solutions. Moreover, the Solana (SOL), and Tron (TRX) networks have threatened the Ethereum ecosystem with heightened daily active addresses of about 5.9 million and 2.3 million respectively.
According to Ethereum co-founder Vitalik Buterin, the development of the L2 scaling solutions is crucial in ensuring the blockchain trilemma, which entails scalability, security, and decentralization. Consequently, the Ethereum Foundation has set aside tens of millions of dollars to develop the next-generation layer two protocols that leverage the ZKEVMs.
Why Base Network is the L2 Leader
The Base network has emerged as the leader in the Ethereum-based L2 ecosystem largely due to the technical and financial support from Coinbase Global Inc. (NASDAQ: COIN).
According to market data analysis from Artemis Platform, the Base network registered a total of $2.3 billion in cash inflows over the past three months. On the other hand, the total cash outflow from the Base network in the same period was about $946 million, thus a net flow of about $1.32 billion.
Remarkably, the Base network outshined the Solana ecosystem which registered a net cash flow of about $1.27 billion in the past three months.
Market Impact
The palpable success of the Base network will have a long-lasting impact on the entire web3 space, but mostly on the Coinbase revenue and Ethereum’s ecosystem. With the notable increase in on-chain activities on the Base network, the Coinbase network is well-positioned to reap significant rewards through heightened revenue on its platform.
Furthermore, the Coinbase exchange has been listing tokens developed on the Base network, thus collecting more trading fees in return.
