Coin Coin reported:
Base, the fast-growing Layer 2 blockchain developed by Coinbase, has achieved a historic milestone by accumulating a record-breaking amount of ETH in its bridging smart contract. Over the past month, the ETH in Base’s bridging contract has surged by 94,728 ETH, reaching an impressive total of 623,130 ETH. This significant growth has made Base the eighth-largest holder of ETH in the market.
What is the reason behind the growth of ETH?
In the past 30 days, the total amount of ETH in Base’s bridging contract has significantly grown by 12%. This surge is consistent with the astonishing 679% increase in Base’s ETH reserves over the past year, totaling 2.91 million ETH. Etherscan data confirms that Base ranks second in terms of ETH holdings in Layer 2 solutions, second only to Arbitrum.
Why did Base join the superchain ecosystem?
The remarkable increase in ETH reserves can largely be attributed to the trust and reliability instilled by Coinbase among its users. Paul Vaden from the Lyra Foundation emphasized that “Coinbase is a force within the industry and a trusted entity,” indicating that Coinbase’s support has had a profound impact on the success of Base.
Joining the superchain ecosystem supported by Optimism’s OP Stack further enhances Base’s capabilities, creating valuable connections within the Ethereum network. Vaden emphasized that this integration adds immense value to the Base platform.
Factors attracting users to utilize Base include its lowest transaction fees, advantages in decentralized finance (DeFi) protocols, and the prospect of airdrops. With average transaction fees below $0.01, users find Base an attractive choice.
DeFi projects like Aerodrome and Moonwell are crucial for increasing Base’s Total Value Locked (TVL). Aerodrome offers high returns for liquidity providers, while Moonwell reports a 43% growth in TVL.
Base’s ETH reserves indicate a continuous growth in user adoption and liquidity.
Locking ETH in Base can facilitate ecosystem growth and increased financial activity.
DeFi platforms significantly enhance Base’s Total Value Locked.
Base’s strong position in the Ethereum ecosystem, with the support of Coinbase and its integration with Optimism, is paving the way for accelerated growth. The increase in ETH reserves demonstrates user trust in Base, implying its potential to attract a wider user base and consolidate its influence in the Ethereum space.
