Ethereum Layer-2 Protocols Evolving and Carving Out Their Niche, Says IntoTheBlock
Analytics firm IntoTheBlock reports that major Ethereum (ETH) layer-2 (L2) protocols, including Base, Arbitrum (ARB), and Optimism (OP), are experiencing growth and establishing their own unique positions in the ecosystem.
Starting with Base, IntoTheBlock highlights the benefits of Coinbase’s layer-2 protocol, which is leveraging the exchange’s large user base and the popularity of blockchain-based social networking platform Friend.tech. Base is leading in terms of unique addresses and transactions, with its momentum being driven by Coinbase’s reach and catering to social apps like FriendTech.
In addition, Base has seen significant growth due to Friend.tech attracting over 100,000 users within a few weeks of its launch. This has expanded Base’s retail user base and strengthened Coinbase’s position.
Arbitrum is dominating the decentralized finance (DeFi) space, maintaining high transaction volumes and hosting the most liquid decentralized exchanges (DEXs). It also boasts the highest total value locked (TVL) in the DeFi sector.
Optimism has found its niche by serving as the foundational infrastructure for other layer-2 ventures, such as Mantle and Base. It is realizing its superchain aspirations with the OP Stack.
As of now, ARB is trading at $0.816, OP at $1.37, and Base does not have a network token yet.
Hot Take: Ethereum Layer-2s Find Their Place in the Ecosystem
Ethereum’s layer-2 protocols, including Base, Arbitrum, and Optimism, are witnessing a surge in specialization as they carve out their own unique paths. Base benefits from Coinbase’s expansive reach and the rise of Friend.tech, attracting a broad user base. Arbitrum dominates the DeFi space with high transaction volumes and TVL. Optimism serves as the foundational infrastructure for other layer-2 projects. This evolution and diversification contribute to the robustness of Ethereum’s layer-2 ecosystem.
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