The Layer-2 network Base, supported by Coinbase, has seen a significant decrease in decentralized finance (DeFi) activities, with the total value locked (TVL) dropping by around 30% in the past two months.
Data from DeFillama shows that the TVL on the Ethereum Layer-2 network has dropped by more than 30%, reaching $284.59 million, compared to its peak in September at $411.5 million.
This means that investors have withdrawn over $100 million worth of assets from protocols operating on the network, despite the improved market conditions during the same period.
The recent decline marks a notable turnaround for this blockchain network, which gained significant attention when it was launched to the public in August. During that time, Base was ranked among the top 10 networks in terms of transaction volume. The rise of memecoins like Bald and the development of the decentralized social protocol Friend.Tech contributed to its widespread adoption.
However, the network has recently witnessed a decrease in TVL and transaction activity. According to data from DeFillama, only 3 out of the top 10 protocols on the network have seen an increase in TVL over the past week, with most of these protocols reporting double-digit losses.
Furthermore, when examining the trading volume on decentralized exchanges (DEXs), it appears that the Layer-2 network has lost its position in the top 10 chains by trading volume.
Base’s network activity also seems to be lagging behind Ethereum and other Layer-2 competitors. Data from L2beat shows that the average daily transactions per second (TPS) on Base are 3.11, significantly lower than Ethereum and other Layer-2 solutions, including Arbitrum and Optimism, which have TPS numbers above 7.
However, these declines do not diminish Base’s popularity among other Layer-2 networks. Among Ethereum Layer-2 protocols, Base is currently the third-largest network by TVL, following Arbitrum and Optimism, according to L2Beat data.