- Base took a hit in TVL, and there was a decline of more than 16%.
- This brings the total worth of the TVL to around $461 million.
Coinbase’s Base is one of the newest versions of layer 2 protocols, and it’s not up to 4 months since the launch of the blockchain mm. So, despite the massive growth, there was a drop in TVL, raising a lot of concern.
Coinbase’s Base is Having a Hard Time in the Market
- Coinbase’s Base, which is a layer 2 protocol by the prominent crypto exchange, is finding it very hard in the crypto industry. So, the amount of TVL on the protocol is suffering from a massive decrease. This is according to data from a layer 2 monitoring platform, L2beat. Previously, we reported how the total value locked (TVL) for Coinbase’s Base skyrocketed to more than $500 million. So, this is no more as there’s a decrease of more than 16% within 30 days.
- Note that this is at the time when L2beat made this report. So, at the time of writing, the TVL of this layer 2 protocol is down by around 14% in a period of 30 days. This makes the total value locked (TVL) on the blockchain hover around the $460 million range. Going into more detail, the worth of natively minted tokens in this network is very low. So, it is declining by more than 61% to stand at $63 million. What is causing this decline in Coinbase’s Base?
Root of the Problem at Coinbase’s Base
- More insights into this new development show that there are some things causing this recent decline in Base TVL. So, one of the major contributing factors to the erosion in Base’s TVL was a sharp decrease in its USDC holdings. Their amount of USDC holdings suffered a massive decline from 160 million to just 29.84 million on Sept. 29. So, there was a further expansion of this data from Dune Analytics.
- There’s still a chance that Base will make a recovery from the recent downturn. Already, there are signs that it is already picking itself up and walking up to the top again. So, there’s a reduction in the percentage of decline. Furthermore, data from DefiLlama shows an increase of more than 4% within the past seven days.
Base vs Solana Battles in TVL Rankings
- Recently, Coinbase’s Base and Solana are pushing to take over the next space in the TVL rankings. So, data from different monitoring platforms shows different figures. But one constant thing is that Base is always ahead of Solana.
- According to data from DefiLlama, Base currently has $351.56m worth of TVL. On the other hand, Solana has $338.03m.
Conclusion
Coinbase’s Base was recently suffering from a decline in the total value locked (TVL). So, there was a decline of more than 16% to bring the value to around $461 million. There are speculations that the primary cause was the recent drainage in Base USDC holdings.
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