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
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.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
