Coinbase-Incubated Layer-2 Blockchain, Base, Witnesses Decrease in TVL
The layer-2 blockchain project, Base, which was incubated by Coinbase, experienced a significant decrease in its Total Value Locked (TVL) in the past week. Despite briefly outshining the Ethereum mainnet, Base’s TVL fell by over 18.28% to $437 million.
Reasons for the Decrease in TVL
The main reason behind this decline can be attributed to the extensive burning of Base USDC on September 29. According to data from Dune Analytics, the TVL dropped from a high of $160 million to just $29.84 million in a single day.
Competition from zkSync Era
Base’s decline allowed Matter Labs’ zkSync Era, a zero-knowledge rollup tech-powered scaling solution, to surpass it with a TVL of $476 million. Among the top five rollups, Base is the only project that experienced a decrease in TVL.
Other Rollups Perform Well
On the other hand, Arbitrum One and OP Mainnet saw increases in their TVLs by 10.12% and 8.29%, respectively. Arbitrum One reached a TVL of $6.17 billion, while OP Mainnet reached $2.80 billion. Additionally, zkSync Era’s TVL also increased by more than 15% during the same period.
Base’s Strength in the Space
Despite the decrease in TVL, Base remains a strong contender in the blockchain space. Since its inception, the network has bridged over $459 million.
Hot Take: Base Network’s TVL Decreases, Allowing zkSync Era to Surpass It
The layer-2 blockchain project, Base Network, experienced a significant decrease in its Total Value Locked (TVL), falling by over 18.28% to $437 million in the past week. This decline was mainly due to the burning of Base USDC tokens. As a result, Matter Labs’ zkSync Era surpassed Base in TVL, reaching $476 million. Despite this setback, Base remains a strong contender in the blockchain space, having bridged over $459 million since its inception.
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