A look at how Base is faring in the competitive L2 market

• Base’s daily active addresses and transactions registered an uptick in the last month.
• The L2 also outstripped zkSync Era in terms of daily transactions and fees.

In the recent past, Layer 2s have gained immense popularity as multiple new networks have been launched in the market. One of the latest in the lot was Coinbase’s own L2, named Base. The network has witnessed steep growth since its inception and reached new highs. Though Base’s growth was promising, it witnessed a drop in its total value locked (TVL) in the last seven days.

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Base’s TVL is dropping

According to L2Beat data, Base’s TVL fell by 16.92% to $445 million in the past seven days. A possible reason behind the drop might be the large-scale burning of Base USDC on 29 September, the amount dropped from 160 million to 29.84 million in one day.

Source: L2beat

The drop in Base’s TVL has allowed other L2s to overtake Base in the past.

In fact, the recent drop allowed zkSync Era to outshine Coinbase’s L2 in terms of TVL. Though the L2 failed to perform in the DeFi space, other metrics did gain upward momentum in the last few days. For instance, Artemis’ data revealed that Base’s daily active addresses increased.

In addition to the uptick in active addresses, L2’s daily transaction counts also gained upward momentum over the last few days, which was encouraging to watch.

The rise in key metrics also allowed the L2 to increase its captured value. Artemis’ data also revealed that Base’s fees and revenue increased, suggesting that it was making more profits.

Source: Artemis

Base vs the rest

Not only Coinbase’s L2, but several other networks also performed well in the recent past. For example, as reported earlier, zkEVM has passed $130 million in deposits. Additionally, the total number of unique addresses has also been on the rise. The rollup’s TVL also witnessed a promising surge of over 23% in the last week.

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While others registered growth, Coinbase’s L2 managed to overtake a few other networks. For instance, Base’s daily transactions crossed those of Starknet and zkSync Era on 1 October 2023.

At press time, Base’s daily transactions stood at 1.44 million. After a dip, Base’s DEX volume also once again went above that of Starknet, which looked optimistic for the network’s future. On top of that, fees collected by the L2 outperformed zkSync Era on 2 October. 

Source: Artemis