Ethereum (ETH) remains the leader in the Web3 space, with over $69 billion in total value locked (TVL) and a stablecoin market cap surpassing $103 billion. This success is largely due to the significant progress of its layer-2 (L2) scaling solutions. However, competitors like Solana (SOL) and Tron (TRX) are making waves, with daily active addresses reaching 5.9 million and 2.3 million, respectively, challenging Ethereum’s dominance.
Vitalik’s Vision: Solving for Blockchain
Vitalik Buterin, Ethereum’s co-founder, stresses that L2 scaling solutions are key to solving the blockchain trilemma, which involves balancing scalability, security, and decentralization. To help achieve this, the Ethereum Foundation has committed tens of millions of dollars to advance next-generation L2 protocols, especially those using ZK-EVMs (Zero-Knowledge Ethereum Virtual Machines).
Why Base Network is the L2 Leader
The Base network has emerged as a leader in Ethereum’s L2 ecosystem, thanks to technical and financial support from Coinbase Global Inc. (NASDAQ: COIN).
According to market analysis by Artemis Platform, Base saw $2.3 billion in cash inflows over the past three months, with $946 million in outflows. This results in a net inflow of approximately $1.32 billion.
Notably, Base outperformed Solana, which reported a net cash flow of $1.27 billion during the same period.
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How Base Impacts Coinbase and Ethereum
The success of the Base network is expected to have a lasting impact on both Coinbase and the Ethereum ecosystem. With more on-chain activity on Base, Coinbase is set to benefit from increased revenue, particularly through higher trading volumes and transaction fees.
In addition, Coinbase has been listing tokens built on the Base network, generating more fees from trading. This partnership not only boosts Coinbase’s earnings but also strengthens Ethereum’s position as the leading platform in the Web3 space.
With its impressive financial performance and growing user base, the Base network is well-positioned to drive both innovation and revenue. Keep an eye out for Base!