Coinbase Layer 2 Base mainnet locks in $34.22 million in assets two days before going live

  • Coinbase Layer 2 solution Base is going live with its mainnet on August 9. 
  • The Base mainnet has gathered $34.22 million in total value locked on its blockchain, ahead of its launch for market participants. 
  • Traders are still reeling from the rug pull of BALD, the meme coin project that crossed $100 million in market cap on Base, days before the mainnet launch.

Coinbase is set to launch its Base mainnet on August 9, the exchange has announced the on-chain summer, a multi-week event for the crypto community. Ahead of the launch, Base has accumulated $34.22 million in Total Value Locked (TVL).

Also read: Ripple XRP price on track to run up to $10 bullish target after one final shakeout

Coinbase Layer 2 Base mainnet launch less than two days away

Two days away from its mainnet launch, Coinbase’s Layer 2 scaling solution has witnessed a spike in adoption among market participants. Based on data from crypto intelligence tracker DeFiLlama, $34.22 million worth of crypto assets have been locked in the Base mainnet.

Total Value of Assets locked in Base mainnet

Total Value of Assets Locked in Base mainnet

Base testnet was launched in February, and the exchange described its Layer 2 solution as a “secure, low-cost, developer-friendly Ethereum Layer 2 built to bring the next billion users to web3.” While there are several Ethereum scaling solutions, Base differentiates itself from others through its security and low-cost transactions.

Base chain is built using Optimism’s OP Stack, a framework that is rollup-centric and facilitates a high level of interoperability between different Layer 2 chains. 

Base is reeling from the impact of BALD meme coin rug pull

Days away from its mainnet launch, a meme coin project BALD was launched and garnered nearly $100 million in market capitalization on Base. Since the mainnet was not live yet, funds bridged by users were locked, and there was no way to withdraw them. The smart contract deployer engaged in a rug pull and wiped out the investment of market participants by pulling liquidity from the pool on LeetSwap DEX.

While Base inches closer to its mainnet launch, market participants who lost their funds to the BALD rug pull are likely to wait and watch projects before bridging their funds to pools on DEXes like LeetSwap, launched on Base.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

Like this article? Help us with some feedback by answering this survey:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Convex Finance extends gains after facing short squeeze

Convex Finance extends gains after facing short squeeze

Convex Finance (CVX), the DeFi token, extends its rally to double-digit gains and raises 26% on Monday, as seen on Binance. Data from Coinglass shows large volume liquidation of short positions, to the tune of $722,000. 

More Cryptocurrencies News

XRP stuck below $0.50 while SEC abandons demand for $2 billion penalty

XRP stuck below $0.50 while SEC abandons demand for $2 billion penalty

XRP struggles to make a comeback above sticky resistance at $0.50 on Monday as traders continue to assess the legal skirmishes between blockchain firm Ripple and the US Securities and Exchange Commission (SEC).  

More Ripple News

Quant price poised for a short-term sell-off amid potential early-holder selling spree

Quant price poised for a short-term sell-off amid potential early-holder selling spree

Quant (QNT) price could have a short-term downward pressure. Data from Lookonchain suggests that an early holder has deposited 118,008 QNT tokens worth $9.78 million into the Kraken exchange.

More Cryptocurrencies News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin retesting its major resistance level

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin retesting its major resistance level

Bitcoin price is retesting its weekly resistance level of $67,147. Ethereum price finds support around $3,321, the price imbalance between $3,146 and $3,498. Ripple price faces rejection due to the key resistance level of $0.499.

More Cryptocurrencies News

Bitcoin: Has BTC found a local price bottom?

Bitcoin: Has BTC found a local price bottom?

Bitcoin (BTC) price looks set for a mild fall this week, weighed by slight outflows in the US spot ETFs and the US Fed keeping a hawkish interest-rate outlook despite easing inflation. Technical indicators suggest that BTC could face a further 5% correction in the short term before resuming the uptrend.

Read full analysis