- Base surpasses Arbitrum in Total Value Locked, becoming the leading Layer 2 solution.
- Increased user engagement signals strong confidence in Base’s potential in decentralized finance.
- The competition among Layer 2 networks intensifies as Base attracts a growing user base.
In a surprising twist, Base, an Ethereum Layer 2, incubated by Coinbase, has surpassed Arbitrum to become the top layer 2 solution based on Total Value Locked (TVL). According to experts, this surge highlights the growing popularity of Base and introduces competition among layer 2 networks.
What is Total Value Locked?
Total Value Locked is as a critical metric in the DeFi landscape. This figure represents the total capital held within a specific protocol. A higher TVL indicates strong user confidence and investment.
Base’s current TVL of $2.38 billion shows significant growth and engagement. An increase in TVL often signals that investors are recognizing the potential within a platform. In contrast, Arbitrum, once a leader, now holds a TVL of $2.344 billion.
Arbitrum’s struggles to maintain its position highlight the fierce competition among layer 2 solutions. As Base rises, the platform captures a larger market share, attracting users who want to explore decentralized finance.
Comparing Ecosystems: Base vs. Arbitrum
As of writing, the stablecoin market capitalization for Base stands at $3.757 billion. By comparison, Arbitrum’s market cap of $4.426 billion remains notable, yet the gap is closing.
Base’s active addresses over the last 24 hours reached an impressive 1.57 million, far surpassing Arbitrum’s 496,370 active addresses. This growing user base further emphasizes the upward trajectory of Base.
The rapid increase in active addresses and TVL shows that a thriving community is rallying behind Base. Each new user boosts the network’s vitality, creating a snowball effect of engagement.
Base’s rise as the top Layer 2 solution highlights its growing influence in DeFi. This shift has no doubt challenged the status quo so we should expect fierce competition between these 2 key players.
The post Base Is the New King of Layer 2 After Surpassing Arbitrum in TVL appeared first on Crypto News Land.
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