Ethereum (ETH) network remains the undisputed leader in web3, with a total locked value (TVL) exceeding $69 billion and a stablecoin market capitalization of over $103 billion, largely due to the significant development of its Layer 2 (L2) scaling solutions. Additionally, the Solana (SOL) and TRON (TRX) networks have threatened the Ethereum ecosystem, with daily active addresses increasing to approximately 5.9 million and 2.3 million, respectively.
Ethereum co-founder Vitalik Buterin stated that the development of L2 scaling solutions is crucial for addressing the blockchain trilemma, which requires scalability, security, and decentralization. Consequently, the Ethereum Foundation has allocated millions of dollars to develop the next-generation Layer 2 protocols utilizing ZKEVM.
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 technological and financial support of Coinbase Global Inc. (NASDAQ: COIN).
According to market data analysis by the Artemis Platform, the Base network has seen a total inflow of $2.3 billion in the past three months, while the total cash outflow during the same period was approximately $946 million, resulting in a net outflow of around $1.32 billion.
Notably, the performance of the Base network has outpaced the Solana ecosystem, which had a net cash flow of around $1.27 billion in the past three months.
Market Impact
The significant success of the Base network will have far-reaching implications for the entire web3 domain, primarily impacting Coinbase's revenue and the Ethereum ecosystem. As on-chain activity on the Base network increases significantly, Coinbase is well-positioned to reap substantial rewards by enhancing its platform's revenue.
Furthermore, the Coinbase exchange has been listing tokens developed on the Base network, thereby generating additional trading fees.
