Coinbase’s Layer 2 scaling solution, Base, has seen a significant shift in 2024, transitioning from the leader in capital inflows through cross-chain bridges to the largest loser this year.
Data reveals that Base has experienced a net outflow of $4.3 billion this year, a sharp decline from the net inflow of $3.8 billion in 2024, which was the highest among the top 20 blockchains.
Meanwhile, Ethereum, the largest smart contract blockchain, has recorded a net inflow of $8.5 billion this year, compared to a net outflow of $7.4 billion last year.
The data indicates a slowdown in momentum for the Base chain, with Ethereum reclaiming its leading position.
Crypto bridges facilitate communication and interaction between different blockchains, enhancing interoperability. Bridging refers to moving tokens between various networks.
The total supply of stablecoins on Base has also stabilized above $4 billion since mid-May, alongside reduced trading volumes.
BASE bleeding ETH
According to data, the total number of ETH deposited on BASE has plummeted from 1.82 million ETH to just over 835,000 ETH in four weeks.
This trend aligns with other Layer 2 solutions, which have witnessed notable ETH outflows recently.
According to a Protocol Specialist, the outflows are largely attributable to Binance withdrawing capital to Layer 1. “The vast majority is just Binance withdrawing to L1. They maintained a significant amount on the L2s, possibly due to incentives or an unbalanced allocation across their supported chains,” the Specialist mentioned.
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