Base, a Layer 2 Solution Built on Ethereum, Surpasses Its Parent Chain in Total Value Locked

This achievement marks a notable shift in the Ethereum ecosystem. Layer 2 solutions such as Base are improving Ethereum’s scalability and demonstrating their ability to outperform the networks they are built on.

In a remarkable development, Base, the Ethereum layer 2 network created by Coinbase, has achieved an impressive milestone, surpassing Ethereum in Total Value Locked (TVL) and user retention.

This achievement marks a notable shift in the Ethereum ecosystem. Layer 2 solutions such as Base are improving Ethereum’s scalability and demonstrating their ability to outperform the networks they are built on.

Significance of Base’s Growth

What sets this growth apart is that it has been achieved without relying on incentives such as token rewards or airdrops. Instead, Base’s rise is driven by organic adoption, with over $4 billion in Total Value Locked (TVL) and unmatched user and developer retention.

This shift indicates a significant change in focus for investors. Layer 2 networks are no longer just supporting players in the crypto space; they are becoming dominant forces.

Impact on Blockchain Dynamics

The fact that Base, which is built on Ethereum, has now outperformed Ethereum, signals a major shift in blockchain dynamics. Layer 2 solutions are evolving from being just supportive infrastructure to becoming powerful networks in their own right.

This achievement underscores Base’s ability to drive adoption and sets the stage for Ethereum’s scaling evolution.

Key Points

* Base, the Ethereum layer 2 network developed by Coinbase, has surpassed its parent blockchain in Total Value Locked (TVL) and user retention.

* Having reached $4 billion in TVL faster than almost any other blockchain, Base is demonstrating rapid adoption and utility.

* Unlike many Layer 2 competitors, Base has achieved growth without the need for free tokens, airdrops, or any other incentives.

* In a remarkable feat, Base boasts the lowest user churn rate and the highest developer retention among leading Layer 2 solutions.

* This achievement signifies that projects and users are not just joining Base but also choosing to stay, indicating a robust and sustainable ecosystem.

* Among the top five Layer 2 solutions—Optimism, Arbitrum Nova, Mantle Network, and Boba Network—in terms of user retention over the past six months, Base has retained the highest percentage of its users.

* Similarly, in terms of developer retention, looking at the top five performing Layer 2 solutions—Optimism, Arbitrum Nova, Scroll, Celo, and Kava Chain—Base again emerges with the highest percentage of developers who continue to build on the platform.

Rising From the Ranks

In the past six months, optimism has soared among blockchain investors. As the crypto market experiences a recovery, interest in new and emerging tokens has skyrocketed.

This shift in investor attention has largely been driven by the rapid rise of layer 2 blockchains, which are expanding on the frameworks of existing blockchains like Ethereum to enhance scalability and reduce transaction fees.

Among the leading layer 2 solutions, Base has emerged as a dominant force, quickly surpassing its parent blockchain, Ethereum, in terms of Total Value Locked (TVL).

Having launched just seven months ago, Base has achieved an impressive milestone, reaching $4 billion in TVL faster than almost any other blockchain, showcasing the rapid adoption and utility of the network.

Moreover, in a testament to the platform’s appeal, Base has achieved this remarkable growth organically, without relying on any free tokens, airdrops, or other such incentives to attract user activity.

In contrast to many of its competitors, who have relied heavily on token incentives to drive initial growth, Base has risen to prominence through natural adoption, driven by the value and utility that its ecosystem offers.

This is a significant shift, as investors are now responding to networks that provide genuine use cases and a sustainable long-term vision.

Another remarkable achievement is Base’s unmatched user and developer retention among layer 2 solutions.

After six months, 78% of the users who engaged with Base at its launch remain active on the platform, a percentage that no other top five performing layer 2 solution has managed to maintain.

Similarly, looking at the top five performing layer 2 solutions—Optimism, Arbitrum Nova, Scroll, Celo, and Kava Chain—in terms of developer retention, we see that Base has retained the highest percentage of developers who continue to build on the platform.

This retention underscores confidence in the platform’s long-term potential and positions Base as a leader in Ethereum’s scaling landscape.