The on-chain data platform IntoTheBlock has indicated that Coinbase‘s Ethereum (ETH) 
$2,316 scaling solution is on track to become the largest layer-2 (L2) blockchain by the end of the year. The analysis focuses on various metrics that demonstrate Base’s growth and its potential to surpass competitors in the L2 space.
Base’s Growth Indicators
IntoTheBlock first examined Base’s total value locked (TVL), a metric representing the amount of assets staked or locked on a platform. They noted that within just one and a half years of operation, Base could surpass Arbitrum in terms of TVL. In September alone, Base saw an increase of approximately 700 million dollars in TVL. If this growth trend continues, it is poised to become the largest L2 by year-end.
Furthermore, IntoTheBlock highlighted that additional metrics also show Base outperforming other popular L2s like Optimism and Arbitrum. Base has consistently ranked higher across several metrics that indicate user preference for the L2 network.
Can It Surpass Other L2s?
Base has experienced increased transaction volume in recent months, capturing 40-60% of the transaction volume across three L2 networks. Since June, it has strengthened its dominance in total transactions for ETH addresses and has shown a continuous rise in the number of new addresses making their first transactions.
IntoTheBlock concludes that Base serves as a model for other crypto firms. It signifies the beginning of a trend where more organizations create their own blockchains to retain users within their product ecosystems. As modular blockchain solutions continue to simplify processes, this movement will accelerate, providing infrastructures tailored to specific user needs.
These developments indicate that Base is beginning to play a significant role in the Ethereum ecosystem and possesses the potential to compete with other L2 blockchains.
