According to market intelligence platform IntoTheBlock, Coinbase’s Ethereum (ETH) scaling solution is on track to become the largest layer-2 (L2) blockchain by the end of the year.
In a recent report, IntoTheBlock suggests that key metrics indicate Coinbase is experiencing significant growth this year.
IntoTheBlock first examines Coinbase’s total value locked (TVL), which represents the amount of assets staked or locked in the platform.
“Coinbase, the L2 blockchain that has been live for just over a year, is close to surpassing Arbitrum as the largest Ethereum L2 by TVL. In September alone, Coinbase saw an influx of approximately $700 million in TVL. If its current growth trend continues, it is likely to be the largest L2 by the end of the year.”
Additionally, IntoTheBlock mentions that other metrics indicate Coinbase is outperforming other popular L2s such as Optimism and Arbitrum.
“TVL is not the only metric where Coinbase has seen significant gains compared to Optimism and Arbitrum. The network has already exceeded Arbitrum and Optimism in multiple other metrics that show users prefer the L2 blockchain.
- Transaction volume on Coinbase has surged in recent months, capturing 40-60% of all volume among the three L2 blockchains.
- Since June, it has increased its dominance in total transactions for ETH addresses.
- It is the only L2 among the three that has consistently grown in new adoption rate (the percentage of new addresses making their first transaction compared to all active addresses that day).”
IntoTheBlock concludes that Coinbase is setting an example that other cryptocurrency firms could follow.
“Coinbase’s success marks just the beginning of a trend where more entities create their own blockchains to retain users within their product ecosystems. This movement is expected to accelerate as modular blockchain solutions continue to simplify the process, enabling customized infrastructures that meet specific user needs.”
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