Base, a layer 2 scaling solution for Crypto Exchange Coinbase, registered with NASDAQ, has moved from the leader in 2024 to the top loser of the year in terms of capital inflows through cross-chain bridges.
Based on data from the Artemis terminal, we saw a net spill of $4.3 billion this year. This is in stark contrast to the net inflow of $3.8 billion in 2024, which was the highest of the top 20 blockchains.
Meanwhile, Ethereum, the world’s largest smart contract blockchain, registered a net inflow of $8.5 billion this year, compared to a net outflow of $7.4 billion the previous year.
Top Chain (YTD) with Netflow. (Artemis)
Data shows that the momentum behind the base chain has slowed down, and Ethereum has regained its top spot.
Crypto-bridges are protocols that promote communication and interaction between different blockchains, improving interoperability. Therefore, bridging refers to the act of moving tokens between different networks.
Cumulative supply of stubcoin at the base has exceeded $4 billion since mid-May, along with mid-May, as shown by the chart below.
Base: Stablecoin Supply for USD and DEX volumes. (Artemis)
Base bleeding ETH
According to data source l2beat, the total number of ethers
The base was deposited from 1.82 million ETH to just over 835,000 ETH in four weeks.
Number of ETHs on the base. (l2beat)
This trend is in line with other Layer 2 solutions that have seen significant ETH spills in recent weeks, according to Michael Nadeau of Defi Report on X.
According to Coinbase protocol specialist Viktor Bunin, the outflow could be due to measurements to withdraw capital to Layer 1.
“The majority just retreat to L1. They kept a profane amount of L2. It’s unclear whether they’re getting the incentive to hold it there or not balanced across the chain that was supported,” Bunin said in X.