The Layer 2 solution of Coinbase has become the topmost Ethereum Layer 2 network based on its Total Value Locked (TVL) within 2 years of its launch. This achievement by Base shows the increasing interest in Coinbase as the Ethereum blockchain looks for scalability solutions.
With $2.49 billion TVL Base has overtaken Arbitrum which is at at $2.41 billion, making it the 5th largest chain based on TVL. This showcases how crypto users rapidly adopted the Coinbase Layer 2 solution and how much buzz it has created within the crypto community.
Several factors led to Base’s success including the user of the Coinbase's user base to launch the network. The platforms' DeFi protocols like Aerodome caused a huge influx of crypto traders to the Layer 2 networks. Additionally, cbBTC, the Coinbase's Bitcoin product also aided the network's growth as it is exclusively supported on Ethereum and Base. Within a month of its launch, cbBTC hit a $400 million market cap and most of it came from the Base Layer 2 network.
To maintain momentum and expand its reach, Base has initiated "Base Around the World," a series of regional buildathons aimed at connecting with developers globally. These events are complemented by in-person meet-ups led by Base's lead developer, Jesse Pollak.
The growth of Base signifies the shift towards Ethereum Layer 2 solutions which has over $15 billion TVL. Most of this, about one-third, is attributed to Base and Arbitrum which is in line with Ethereum's 100,000 transactions per second scalability roadmap called “Surge”.