Coinbase’s Base Outperforms Several Ethereum-based Layer-2 Networks

Coinbase has had remarkable success with Base. In its Q2 2024 earnings report, the company posted a total revenue of $1.45 billion, surpassing analysts’ predictions of $1.4 billion.

Key Notes

Base Network has soared to the top of the chart among its rival Ethereum L2 protocols.Aerodrome Finance is the key liquidity hub on the Base protocol.To innovate some more, Base has introduced Basenames to simply user experience for its users.

The Ethereum layer-2 blockchain base from Coinbase Global Inc (NASDAQ: COIN) has outperformed several other secondary networks. Amongst the rapidly growing L2 blockchains, it hardly stands out as a technological pioneer. Its code, borrowed from Optimism, has thoroughly served Base, especially the OP Stack framework, which allows for the easy spinning up of new L2s.

Base Controls 18% of L2 Market Share

For a network launched only last year, Base has grown tremendously. It has climbed the ladder to become the second on the key industry leaderboard provided by L2Beat. Out of 74 active L2 networks, it has about 18% of the market share. It comes right after Arbitrum One, which dominates with a 40% share.

By this standard, Base is soaring above many other networks before they were even launched. This includes Starknet, Polygon, and even Optimism itself. In August, the Coinbase L2 chain welcomed many users even though it did not have a naive token like its counterparts.

Data provided by DeFiLlama showed that the Base network had a Total Value Locked (TVL) of about $1.51 billion and a stablecoins market cap of around $3.19 billion at the time. The total number of active addresses on the Base network was about 839,000.

During the same period, Arbitrum (ARB) had more than $2.7 billion in total value locked and a stablecoins market cap of about $4.55 billion. Additionally, the Arbitrum network had 413,000 daily active users. Similarly, Optimism had a TVL of about $620 million and a stablecoins market cap of around $1.31 billion. It also boasts of 67,000 active addresses.

It is worth noting that Aerodrome Finance contributes a significant portion of Base’s Total Value Locked. This decentralized exchange contributes as much as $592 million to Coinbase L2’s TVL.

Overall, the American cryptocurrency exchange has had remarkable success with Base. In its Q2 2024 earnings report, the company posted a total revenue of $1.45 billion, surpassing analysts’ predictions of $1.4 billion.

More Improvements to the Base Network

Several additions have been made to improve the Base network in the last few months. Last month, the prominent L2 solution made a solid entry in the onchain identities sector by launching “Basenames.”

These Basenames are built using the Ethereum Name Service (ENS) infrastructure. They aim to allow users to simplify their complex hexadecimal wallet addresses into user-friendly, readable names. Notably, these name service is not new in the crypto ecosystem as other protocols have also implemented them.

It is quite similar to subdomains on websites, which allow an existing ENS domain owner to create and manage multiple surnames or subdomains under their primary name. In its announcement, Base explained that Basenames will serve as a critical component of its ecosystem. The protocol said this product will make it easier for users to interact within the blockchain space.

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