Over $110 million in crypto assets moved to Coinbase’s layer-2 Base.
According to L2beat, $114 million in crypto assets have been moved to Base – layer-2 announced by Coinbase in March of this year. This number is nearly 97% higher than 7 days ago. At the same time, Base’s daily transactions per second (TPS) also spiked by 405% on the same reference frame.
Base is attracting cash flow. Source: L2beat
Total Value Locked (TVL) on Base, as of 08/06/2023. Source: L2beat
The Base implementation is part of what Coinbase describes as the “Onchain Summer,” where the world will see big names like Coca-Cola and OpenSea join hands with crypto exchanges as on-chain events. After a few weeks of moving to the main net, Base last week officially launched the ETH bridge for users.
Base builder limited mainnet went live on July 13th. At that time, if you want to bridge this asset to layer-2, you must manually transfer it to the contract provided by the project. However, a report by Vishal Chawla from The Block shows that the majority of users are still happy to transfer assets using proxy contracts or other bridges to trade meme coins. From there, network activity began to be more active than ever.
Song Base also experienced a few unfortunate incidents after the mainnet, the most serious probably being the attack on the meme coin BALD rugpull user and the LeetSwap exchange.
Even so, Coinbase’s Ethereum scaling solution still plays an important role in the company’s strategy to increase profits. Specifically, Base brought in from about 13,000 USD to more than 430,000 USD in just July 29-30. Placed on the balance sheet with two “seniors” Arbitrum and Optimism, Base is no slouch, even operating more efficiently one day.
Profit statistics of layers-2 Base, Arbitrum and Optimism. Source: The Block
In its recent second-quarter earnings letter to shareholders, Coinbase pointed to Base as an initiative illustrating the company’s ambition to expand its business outside of its previous trading framework. Letter wrote:
“Base is an investment in blockchain infrastructure that we hope will reduce fees and increase transaction speed – two key attributes that will unlock new use cases over time.”
Coinbase’s total revenue for the quarter was $707.9 million, beating analysts’ expectations.