TL;DR
- Base, from Coinbase, made $6M+ in on-chain profits in May, outpacing Blast and Optimism.
- Base’s profit surge came from TVL growth due to Ethereum upgrades.
- Blast’s share of layer-2 profits rose to 15.2% in May.
The escalation of Ethereum (ETH) layer-2 networks is reaching new heights, with Base leading the way in profitability.
In May, this network, launched by the renowned cryptocurrency exchange Coinbase, raked in over $6 million in on-chain profits, surpassing its closest competitors like Blast and Optimism.
The success of Base has been attributed to several key factors.
Firstly, its profitability has been propelled by a remarkable surge in total value locked (TVL), which has been catalyzed by the implementation of significant Ethereum upgrades such as EIP-4844 and proto-danksharding via the anticipated Dencun upgrade in March.
This continuous growth in TVL indicates a growing confidence and adoption within the Ethereum community.
However, Base is not alone in the race towards profitability. Blast, an emerging layer-2 network developed by the creators of the NFT marketplace Blur, has also been rapidly gaining ground.
In May, Blast managed to increase its share of total layer-2 profits to 15.2%, a significant jump from 5.3% in April.
This is partly due to its unique offering of native yield for ETH and stablecoins, as well as projects like Pacmoon and Fantasy Top, which provide generous incentives to users.
The landscape of Ethereum layer-2 networks promises to remain competitive and ripe with innovation
As networks like Base and Blast pave the way in terms of profitability and growth, we anticipate witnessing even more remarkable advancements and exciting developments in this dynamic space in the months ahead.
Moreover, ongoing efforts to enhance accessibility, such as the introduction of Coinbase’s new Smart Wallet and promotional initiatives like the recent “On-Chain Summer” rewards campaign, will play a pivotal role in fortifying the Ethereum layer-2 ecosystem.
These initiatives aim to streamline user experience and make interacting with layer-2 solutions more intuitive and rewarding.
Consequently, they will undoubtedly broaden the appeal of Ethereum layer-2 networks, attracting an influx of new users eager to explore the benefits of decentralized finance (DeFi) and other blockchain-based applications.
