Coinbase’s Layer-2 scaling network, Base, has overtaken the Solana blockchain in Total Value Locked (TVL), signaling a major shift in the decentralized finance (DeFi) landscape as Ethereum-linked protocols regain dominance. This development follows a period of rapid growth for Base, which functions as a secondary layer atop the Ethereum mainnet to provide faster and cheaper transactions. According to reporting from 24/7 Wall St., the movement of capital into Base suggests that Ethereum is successfully reclaiming ground that was previously lost to high-speed competitors like Solana.
How did Base surpass Solana in DeFi market share?
Base surpassed Solana in DeFi market share by attracting a higher volume of capital deposited into its decentralized applications, a metric commonly referred to as Total Value Locked. While Solana had previously been a primary destination for investors seeking alternatives to Ethereum's high transaction fees, the integration of Base within the Coinbase ecosystem has streamlined the onboarding process for retail and institutional users alike. This transition highlights a broader trend where Ethereum Layer-2 solutions are becoming the preferred environment for yield-generating activities and asset management.
Coinbase's Base now holds more DeFi money than Solana, raising questions about whether Ethereum is winning back ground from its primary rivals.
Is the broader crypto market facing a liquidity crunch?
The broader crypto market is currently facing a liquidity crunch as evidenced by the fact that the total supply of stablecoins shrank by approximately $5 billion in a single week. This contraction in stablecoin liquidity represents a significant withdrawal of "dry powder" that typically fuels asset rallies. 24/7 Wall St. reports that this exodus of capital raises concerns regarding Ethereum's ability to maintain a price rally while the total amount of money circulating within the ecosystem is actively declining.
How are other scaling solutions and competitors performing?
Other scaling solutions and competitors are experiencing significant volatility, as seen with the Starknet protocol where the STRK token slumped 57% over a four-week period. This decline indicates that the rally for certain Layer-2 networks may be unwinding as the market consolidates around a few dominant players like Base. Meanwhile, Solana continues to be a subject of long-term speculation; LiteFinance notes that despite the recent dip in DeFi rankings, various analysts are still producing price forecasts for SOLUSD spanning from 2026 through 2040 and beyond.
What does this mean for Ethereum's future dominance?
Ethereum's future dominance appears increasingly tied to the success of its Layer-2 ecosystem rather than the mainnet alone. By shifting high-frequency trading and DeFi protocols to networks like Base, Ethereum can compete with the low-cost structure of Solana while maintaining its underlying security. However, the sustainability of this growth remains tethered to global liquidity trends, which currently show signs of cooling as investors pull billions out of stablecoin reserves.
Market Snapshot
| Asset | Price | 24h | Market Cap |
|---|---|---|---|
 Bitcoin BTC | $75,801 | -0.37% | $1524.3B |
 Ethereum ETH | $2,233 | -0.56% | $272.9B |
 BNB BNB | $696.88 | +0.28% | $91.6B |
 XRP XRP | $1.16 | -0.91% | $73.7B |
 Solana SOL | $89.01 | -1.16% | $52.6B |
 Dogecoin DOGE | $0.0707 | -1.84% | $11.1B |
 Cardano ADA | $0.179 | -2.53% | $6.7B |
Live data: CoinGecko — 2026-11-08 09:21 UTC
