Base Network Emerges as a Formidable Rival to Arbitrum, Registers 37% TVL Surge in Two Weeks

Base network's TVL stood at an all-time high of $1.96 billion, at press time per DeFiLlama. This metric has surged by around 37% in the last two weeks.

Base, a layer 2 network built on Ethereum, has seen rapid growth in its decentralized finance (DeFi) Total Value Locked (TVL), posing a strong challenge to Arbitrum (ARB).

According to data from DeFiLlama, Base network's TVL reached an all-time high of $1.96 billion at press time. This metric has seen a surge of about 37% in the last two weeks.

In contrast, Arbitrum's TVL has not shown any significant gains within the same time frame.

As per DeFiLlama, Arbitrum still holds the position of the largest Ethereum layer 2 in the DeFi space, with a TVL of $2.54 billion. However, Base network's rapid growth indicates that it could soon overtake Arbitrum.

Artemis data shows that daily active addresses on Base have surged from around 507,000 to more than 1.2 million in the last three months. During the same period, daily active addresses on Arbitrum have decreased from 789,000 to about 466,000.

Moreover, Base is leading in daily transaction count, with daily transactions on the network currently being two times higher than transactions on Arbitrum.

The increase in daily transactions and addresses on Base while Arbitrum experiences a decrease in the same metrics suggests a competitive shift where Base is gaining traction and Arbitrum is losing ground.

Amidst this competitive landscape, increased activity on Base is also observed in a rise in stablecoin supply. According to Token Terminal, USD Coin (USDC) supply on Base has increased by $300 million since the start of the month.

On a year-to-date basis, USDC supply on Base has increased by nearly 70 times, from below $50 million on 1st January to $3.35 billion. These metrics indicate increased activity and liquidity on the Base network.

As Base continues to eat into Arbitrum's market share, will ARB price break out to hit $0.82 after confirming a bullish pattern?

Artemis data shows that daily active addresses on Base have surged from around 507,000 to more than 1.2 million in the last three months. During the same period, daily active addresses on Arbitrum have decreased from 789,000 to about 466,000.

Moreover, Base is leading in the daily transaction count, with daily transactions on the network currently being two times higher than transactions on Arbitrum.

The increase in daily transactions and addresses on Base while Arbitrum experiences a decrease in the same metrics suggests a competitive shift where Base is gaining traction and Arbitrum is losing ground.

Amidst this competitive landscape, increased activity on Base is also observed in a rise in stablecoin supply. According to Token Terminal, USD Coin (USDC) supply on Base has increased by $300 million since the start of the month.

On a year-to-date basis, USDC supply on Base has increased by nearly 70 times, from below $50 million on 1st January to $3.35 billion. These metrics indicate increased activity and liquidity on the Base network.

As Base continues to eat into Arbitrum's market share, will ARB price break out to hit $0.82 after confirming a bullish pattern?

A double-bottom pattern has been confirmed by ARB price, indicating a high probability of a bullish reversal. However, the altcoin encounters strong resistance at the neckline after failing to break above $0.62 in the last four days.

(Source: Tradingview)

For ARB to break out and rally to the next target price of $0.82, high buying volumes are needed. But a glance at the volume histogram bars reveals that selling pressure is higher than buying pressure.

The RSI line has also flattened after a sharp move north, indicating that buying momentum is waning. However, the RSI at 64 is still in bullish territory.

If buyers remain hesitant, ARB might continue to consolidate at the neckline, which is the $0.61-$0.62 price level, before making a decisive move. A failed breakout above the neckline could see the price slip to the support level at $0.47.

According to Kaito AI, the layer 2 industry continues to receive attention across the industry. This industry ranked fourth in top crypto narratives this year, which could see L2 tokens like ARB attract interest.

(Source: X)