Upward Trend in Base Liquidity Surpasses Ethereum Mainnet TVL
Base has set its sights on becoming the top-tier Ethereum layer 2 network in terms of liquidity.
Throughout this year, the platform has seen remarkable growth, solidifying its position at the forefront of the sector.
The Total Value Locked (TVL) on Base serves as a clear indicator of the network’s impressive advancement. Over the past 12 months, there has been a consistent upward trajectory in TVL, with no signs of slowing down.
This week, Base’s TVL reached an all-time high of $2.30 billion, marking a significant milestone since its inception.
Furthermore, the substantial increase in TVL was accompanied by a notable expansion in the stablecoin market cap. This figure surged to a record high of $3.72 billion.
The remarkable growth in TVL signifies a substantial influx of liquidity into Base’s ecosystem.
Data from Dune suggests that liquidity flowing into Base has been surpassing that of the Ethereum mainnet.
Between June and October, approximately $32.1 million worth of liquidity moved into Base, while Ethereum only saw $6.35 million during the same period.
Reports suggest that a significant portion of the liquidity entering Base shifted from CompoundV2 during the mentioned timeframe. Conversely, most of the liquidity flowing into Ethereum originated from Aave.
Active Transaction Volume Fuels Base’s Momentum
These insights portray a network that is experiencing robust transaction activity.
DeFiLlama data illustrates a consistent growth in daily transactions on the Base network throughout the year, culminating in a new all-time high this week.
On the 8th of October, transactions peaked at 5.73 million, marking a record high for daily transactions on the network.
For context, daily transactions on Base were under 1 million between January and mid-March.
These findings underscore Base’s ascent as one of the premier Ethereum networks, ranking second among layer 2 networks in terms of TVL, with only Arbitrum surpassing its numbers.
As of the latest data, Arbitrum held a market cap of $2.32 billion, positioning it to potentially claim the top spot if the TVL trend persists.
In conclusion, Base’s performance in the crypto space this year has been exceptional, attributed to a combination of factors such as robust address growth, a solid stablecoin presence, and an attractive liquidity landscape.