- Base network’s DeFi TVL is currently at an all-time high.
- A competitive shift has seen Arbitrum continue to lose its market share to Base.
As a seasoned analyst with years of experience in the crypto market, I have witnessed numerous shifts and trends that have shaped the landscape of this dynamic industry. The rapid growth of Base network is undeniably one such trend that has caught my attention.
In the realm of Ethereum‘s [ETH] secondary networks, Base is gaining ground as a strong competitor to Arbitrum [ARB], thanks to a surge in its Decentralized Finance (DeFi) Total Value Locked (TVL).
At the present moment, as reported by DeFiLlama, the total value locked within this network’s TVL (Total Value Locked) reached an unprecedented peak of $1.96 billion. Over the past fortnight, this key metric has experienced a significant increase of approximately 37%.
In comparison, Arbitrum’s TVL has not registered any significant gains within the same period.
According to DeFiLlama, Arbitrum currently reigns as the biggest Ethereum layer 2 in the Decentralized Finance (DeFi) sector with a Total Value Locked (TVL) of approximately $2.54 billion. Yet, Base network’s swift expansion indicates that it might overtake Arbitrum soon.
Base network sees massive growth
Over the past three months, the number of daily active addresses using Base has significantly increased, climbing from approximately 507,000 to over 1.2 million. Conversely, on Arbitrum, the daily active addresses have decreased from a high of 789,000 to around 466,000 during this same period.
The base is leading in the number of daily transactions, with the daily network transactions being approximately twice as many as those on Arbitrum at this point.
It seems that more daily transactions and addresses are being recorded on Base, while these numbers are decreasing on Arbitrum. This could indicate a trend where Base is becoming more popular or successful, as Arbitrum appears to be experiencing a decline in usage.
A surge in Base’s activity is also reflected in an uptick of stablecoin holdings, with the USDC supply on Base rising by a significant $300 million since the beginning of this month, as per Token Terminal.
Since the beginning of this year, the USDC supply on the Base platform has surged approximately 70-fold, rising from around $50 million on January 1st to over $3.35 billion now. This suggests that there’s been a significant increase in activity and liquidity within the Base network.
Given that Base is eroding Arbitrum’s market dominance, could the price of Arbitrum (ARB) surge towards $0.82 if it establishes a bullish trend following a favorable pattern?
ARB price outlook
The price of ARB has established a double-bottom formation, indicating a possible upward trend shift. Yet, this cryptocurrency encounters significant obstruction near the neckline, as it hasn’t managed to surpass the $0.62 level over the past four days.
To push ARB beyond its next target price of $0.82 and surge ahead, it’s crucial to have substantial buying activity. Unfortunately, as indicated by the volume histogram, there appears to be more sellers in the market compared to buyers at present.
The line for the Relative Strength Index (RSI), which measures buying and selling pressure, has stopped advancing after a significant increase, indicating that buying force might be diminishing. However, with an RSI of 64, it remains in a bullish zone, suggesting potential continued growth.
Realistic or not, here’s ARB’s market cap in OP’s terms
If purchasers show uncertainty, ARB may persist in consolidating around the neckline, which is approximately between $0.61 and $0.62. Afterward, it might make a clear upward or downward move. A breakout failure above the neckline could potentially lead to a drop in price toward the support level of $0.47.
According to Kaito AI, the second-layer industry is gaining traction among professionals in our field. This sector was the fourth most discussed topic in cryptocurrency this year, a fact that might lead to increased interest in secondary-layer tokens such as ARB.
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2024-09-26 03:03