Base, a rapidly expanding Layer 2 blockchain developed by Coinbase, has achieved a historic milestone by accumulating a record amount of ETH in its bridge smart contract. Over the past month, the ETH in Base’s bridge contract surged by 94,728 ETH, reaching an impressive total of around 623,130 ETH. This significant increase positions Base as the eighth largest holder of ETH in the market.
What Contributed to the ETH Growth?
The last 30 days witnessed a remarkable 12% uptick in the total ETH within Base’s bridge contract. This surge aligns with a staggering 679% rise in Base’s overall ETH reserves over the past year, now totaling 2.91 million ETH. Etherscan data confirms that Base ranks second in ETH holdings among Layer 2 solutions, trailing only Arbitrum.
Why Did Base Join the Superchain Ecosystem?
The surge in ETH reserves can largely be credited to the trust and reliability that Coinbase instills in users. Paul Vaden from the Lyra Foundation emphasized that “Coinbase is a force in the sector and a trusted entity,” indicating the profound impact of Coinbase’s support on Base’s success.
Joining the Superchain ecosystem powered by Optimism’s OP Stack further enhances Base’s capabilities, creating valuable connections within the Ethereum network. Vaden highlighted that this integration has added significant value to the Base platform.
Factors attracting users to Base include its minimal transaction fees, advantages from decentralized finance (DeFi) protocols, and prospects for airdrops. With an average transaction fee below $0.01, users find Base to be an appealing choice.
DeFi projects such as Aerodrome and Moonwell are crucial to the increase in Base’s total value locked (TVL). Aerodrome offers high returns for liquidity providers, while Moonwell has reported a 43% increase in its TVL.
- Base’s ETH reserves indicate a growing user adoption and liquidity.
- Locking ETH on Base fosters ecosystem growth and heightened financial activity.
- DeFi platforms are significantly enhancing Base’s total value locked.
Base’s strong standing within the Ethereum ecosystem, bolstered by Coinbase’s backing and its integration with Optimism, is paving the way for accelerated growth. The rise in ETH reserves showcases user trust in Base, hinting at its potential to attract a broader user base and solidify its impact within the Ethereum landscape.