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In a significant development, Coinbase's Layer 2 blockchain, Base, is on the verge of surpassing Arbitrum as the largest Ethereum Layer 2 by total value locked (TVL), a cryptocurrency metric used to measure the total value of digital assets locked or staked on a particular decentralized finance (DeFi) platform.
According to IntoTheBlock, Base has been live for just over a year and is rapidly closing the gap with Arbitrum.
"Base, the L2 blockchain from Coinbase that has been live for just over a year, is close to surpassing Arbitrum as the largest Ethereum L2 by TVL," IntoTheBlock wrote.
While Base is still in its early phases, it holds a unique position in the Layer 2 industry thanks to its strategic synergy with Coinbase, one of the largest cryptocurrency exchanges, and Optimism, one of the leading L2 technology stacks.
Coinbase ranks as the largest publicly traded U.S. crypto exchange and Base provides an entry point to introduce these users to DeFi. This in turn encourages decentralized applications to build atop Base, since they can use Coinbase's existing products and user base to gain access to a new pool of non-DeFi natives.
Thus, Base has seen a surge in user adoption and transaction volume, contributing to its TVL.
According to DefiLlama, Arbitrum's total value locked (TVL) is presently $2.595 billion. Base's total value locked (TVL) is closing in on this figure, now at $2.358 billion.
In September, Coinbase debuted its version of wrapped Bitcoin cbBTC following a teaser of the WBTC alternative in August. The cbBTC token launched on the Ethereum and Base networks, allowing users to use Bitcoin in their respective decentralized finance ecosystems.
In other news, Paymaster now allows users to pay for gas with custom ERC-20 tokens on Base. This functionality increases token utility, facilitates app engagement and allows users to purchase gas with USDC or custom tokens rather than ETH.
Also, as a warning, there is a new scam floating around the Base community. Attackers are requesting that people download video conferencing software with malware that compromises their devices and wallets. Users are encouraged to be cautious and stick with known programs such as Meets, Zoom or Teams.