In a surprising turn of events, Coinbase’s Layer 2 scaling solution, Base, which was once celebrated as the leading platform for capital inflows through cross-chain bridges in 2024, has faltered significantly in the current year. The shifting financial landscape presents a vivid picture of the volatility inherent in the cryptocurrency space.
Data from the Artemis Terminal reveals that Base has experienced a staggering net outflow of $4.3 billion in 2025. This marks a stark contrast to the net inflow of $3.8 billion recorded in 2024—an impressive feat that positioned it as the top performer among the leading 20 blockchains.
In the meantime, Ethereum, the dominant player in the smart contract space, has demonstrated resilience by securing a net inflow of $8.5 billion this year. This is a remarkable turnaround, especially compared to the net outflow of $7.4 billion observed in the previous year.
These developments indicate that the momentum supporting the Base chain is waning, while Ethereum has deftly reclaimed its position at the forefront of the market. This shift underscores the volatility and unpredictability that often characterize the cryptocurrency landscape.
Crypto bridges—protocols that enable connectivity and communication between different blockchains—play an essential role in enhancing interoperability. Bridging refers to the process of transferring tokens across varying networks, facilitating a more interconnected ecosystem.
The cumulative supply of stablecoins residing on Base has seen little change, remaining steady above $4 billion since mid-May. This stagnation has coincided with an overall decrease in trading volumes, as evidenced by the accompanying chart.
BASE Bleeding ETH
Additional insights from the analytics platform L2BEAT reveal a dramatic decline in the total amount of ether (ETH) deposited on Base, plummeting from 1.82 million ETH to just over 835,000 ETH in a mere four weeks.
This trend does not appear to be isolated; other Layer 2 solutions have similarly reported significant ETH outflows in recent weeks, as highlighted by Michael Nadeau of The DeFi Report.
According to Viktor Bunin, a Protocol Specialist at Coinbase, these outflows can be largely attributed to Binance withdrawing capital back to the Layer 1 blockchain. Bunin noted, “The vast majority is just Binance withdrawing to L1. They kept an ungodly amount on the L2s. Unclear if they were getting incentives to keep it there or just didn’t balance across their supported chains,” as he observed on his social media account.
As the cryptocurrency market continues to evolve, the shifts in capital flow between platforms serve as a critical reminder of the dynamic nature of digital assets. Stakeholders and investors alike must remain vigilant and adaptive in the face of these ongoing changes.
