Layer 2 blockchain Base becomes eighth-largest ETH holder, boosting adoption with low fees and DeFi yields.
The world of cryptocurrency is witnessing a significant development as the primary bridge for Coinbase's Layer 2 (L2) blockchain, known as Base, has reached a new milestone. This bridge now holds nearly 623,130 ETH, equivalent to approximately $1.6 billion. This achievement positions Base as the eighth-largest holder of Ethereum (ETH) globally.
Base is a Layer 2 blockchain developed by Coinbase, a well-known cryptocurrency exchange. Layer 2 solutions are designed to improve the scalability and efficiency of blockchain networks by processing transactions off the main blockchain (Layer 1) and then recording them back. This approach helps reduce congestion and transaction costs.
Base's impressive growth is largely due to its strong connection with Coinbase and its integration into Optimism’s Superchain. Optimism is another Layer 2 solution that enhances Ethereum's capabilities. The collaboration with Optimism has provided Base with a robust infrastructure, attracting more users and liquidity.
Over the past 30 days, Base's smart contracts have seen a 12% increase in ETH holdings. Looking at a broader timeline, there's been a staggering 679% growth over the past year. This upward trend suggests that more users are recognizing the benefits of using Base for their cryptocurrency transactions.
As Base continues to grow, it could potentially become a more integral part of the Ethereum ecosystem. Its ability to offer lower fees and attractive DeFi opportunities positions it well for continued adoption.
For cryptocurrency enthusiasts and investors, Base presents an opportunity to engage in Ethereum-based activities with reduced costs. Its association with Coinbase and integration with Optimism provide a strong foundation for future growth. As always, potential users should conduct thorough research and consider risks before participating in any cryptocurrency platform.
