- Backed by the reputation of Coinbase Global, Base has attracted leading web3 projects on the Ethereum ecosystem led by Uniswap.
- The Base network has registered a significant rise due to its meme coins led by Degen (DEGEN) thus accounting for the notable rise in daily transactions.
After introducing the Base Layer Two network earlier last year, Coinbase Global is now the proud sponsor of one of the fastest-growing Ethereum-based scaling solutions. According to market data provided by l2beat, the optimistic rollup on the Ethereum network has about $4.2 billion in total value locked, with about $2.71 billion natively minted on the chain and around $1.5 billion canonically bridged from other chains.
The rise of the Base network to a top-tier layer two Ether-based networks is heavily influenced by Coinbase support on the web3 projects. According to market data provided by Coingecko, the Coinbase Ventures portfolio has a total valuation of about $69 billion, led by Uniswap (UNI), Polygon (MATIC), Near Protocol (NEAR), Aptos (APT), and Immutable (IMX), among many others.
As a result, Base Network registered more than 50 million transaction counts, mostly triggered by the rise of the meme coin frenzy. According to on-chain data analysis provided by Coinranking, Base meme coins have a market cap of about $2.34 billion and a total average daily trading volume of around $166 million.
Some of the top meme coins based on the Base network include DEGEN, The Doge NFT, TOSHI, and Normie (NORMIE), among many others.
Ethereum Layer Two Competition
As Crypto News Flash previously reported, the Ethereum-based layer two networks have registered a sharp uptick in on-chain activity since the launch of the Dencun upgrade last month. The notable competition in the Ethereum layer two solutions to gain more users has significantly improved the web3 growth space.
Moreover, web3 developers are incentivized to build on the various layer two solutions through grant programs. The Base network has outstripped veteran Ethereum-based scaling solutions led by Polygon (MATIC), and Arbitrum. According to market data provided by defillama, the Arbitrum network has about $3.3 billion in TVL, while the Polygon (MATIC) network has around $1 billion in TVL.
The competition in the Ethereum layer two scaling solution will continue to rise in the coming quarters fueled by the ongoing mass adoption of digital assets through real-world assets (RWA) tokenization.
Market Picture
The Base network does not have a native token but plays a crucial role in the overall revenue of the Coinbase Global exchange. According to the latest stock market data, COIN shares have gained more than 51 percent in the past month to trade around $254.34 on Monday.
Meanwhile, Ethereum price remains the largest beneficiary of the rising adoption of its layer two scaling solutions. The Ethereum network has more than $54 billion in TVL and over $80 billion in stablecoins market cap. As a result, ETH price rallied about 6.9 percent in the past 24 hours leading to Monday to trade around $3,621.
