How Coinbase Dethroned Base Arbitrum as Top Ethereum Layer 2

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Contents

The base will be the largest L2 $300m WLFI sale Uniswap has launched an L2 This Week in DeFi Governance Post of the week

GM, Tim Here.

Base overtakes Arbitrum.Trump's crypto project sets date for its $300 million token sale. Why UNI Token Rises on Uniswap's Layer 2 News

The base will be the largest L2

Coinbase's base has become the largest Layer 2 with just over $2.4 billion in DeFi deposits.

Layer 2s are separate blockchains built on top of the main Ethereum network. They are designed to provide fast, cheap transactions while inheriting some of Ethereum's security.

There are several factors that stimulate base growth:

Popular DeFi protocols like Aerodrome offer high yields. Ability to leverage Coinbase's large userbase. Coinbase recently launched Wrapped BTC production.

At the same time, Arbitrum, formerly the top Layer 2, has struggled to turn the huge sums spent by its DAO, the community governing Arbitrum, into meaningful growth.

Ethereum Layer 2s: Base from Arbitrum topped. (dephylla)

This move shows how powerful Base's Coinbase connection is. The $44 billion company's support, resources and brand base undoubtedly contributed to its success.

By June, Coinbase was closed 8 million Monthly active users according to data platform Backlinko.

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Base is not the only Ethereum layer 2 backed by a major crypto company.

There is also a Layer 2 Linea developed by crypto wallet Metamask developer Consensis. Many of the factors that contributed to Bays' success hold true for Linea as well.

Despite launching a month earlier than Base, Linea has only attracted $454 million in DeFi deposits so far.

$300m WLFI sale

Donald Trump's crypto venture, World Liberty Financial, will begin selling its WLFI token today.

The Republican candidate promoted the upcoming sale of a Post Friday from the official World Liberty Financial X account.

World Liberty Financial plans to sell 20% of its token $1.5 billion The valuation, according to documents seen, is $300 million net The Block. Code tests previously indicated the project plans to raise $540 million at a valuation of $1.8 billion.

The move marks the first time a US presidential candidate has launched a crypto token.

Many in DeFi — including some of Trump's most vocal supporters — worry that World Liberty Financial will damage the former president's campaign.

“Is there anything we as crypto Twitter can collectively do to stop the World Liberty Coin launch?” Nick Carter, Founding Partner of Castle Island Ventures, Said On X.

“It would really hurt Trump's election chances, especially if it was hacked.”

Only those who pass the Know-Your-Customer checks can purchase tokens. In the US, only accredited investors can purchase WLFI.

Uniswap has launched an L2

Uniswap Labs, the company behind the top decentralized exchange, says it will release Ethereum Layer 2 before the end of the year.

But what really piqued the interest of DeFi locals is how Uniswap DAO's UNI token factors in.

The new blockchain, called Unichain, will share its revenue with UNI holders who choose to lock or “stake” their tokens.

Uniswap has collected more than $3.8 billion in fees since its launch nearly six years ago. While the majority of these fees go to liquidity providers, a small percentage may be redirected to UNI holders in the future.

Unichain UNI holders have additional ways to return:

It can share a portion of the profit arbitrating the difference between transaction fees and settlement costs. It can also share the cash generated from the maximum extractable value or MEV.

Although nothing has been confirmed, traders are optimistic – the UNI token is up 10% on the news.