Coinbase’s Base Sees Over $4B in Outflows Through Cross-Chain Bridges; Ethereum Nets Inflows of $8.5B
Coinbase’s Base, a Layer 2 scaling solution on the Nasdaq, has experienced a dramatic reversal of fortune. After leading in capital inflows via cross-chain bridges in 2024, accumulating $3.8 billion, Base now shows a net outflow of $4.3 billion in 2025. This significant shift contrasts sharply with Ethereum’s performance. Ethereum, the dominant smart contract blockchain, has seen a net inflow of $8.5 billion this year, a turnaround from a $7.4 billion outflow in 2024. This data underscores Base’s decelerating momentum, with Ethereum regaining its leading position.
Cross-chain bridges, crucial for interoperability between different blockchains, facilitate the transfer of tokens across networks. The recent data reveals a concerning trend for Base. The cumulative supply of stablecoins on Base has plateaued above $4 billion since mid-May, accompanied by a decrease in trading volume. This stagnation further highlights the weakening market position of the Layer 2 solution.
A particularly alarming statistic comes from L2BEAT, showing a drastic reduction in Ether (ETH) deposited on Base. In just four weeks, the total amount of ETH has plummeted from 1.82 million to just over 835,000. This trend isn’t isolated to Base; other Layer 2 solutions have also witnessed substantial ETH outflows recently, according to Michael Nadeau of The DeFi Report.
Coinbase’s Protocol Specialist, Viktor Bunin, attributes the significant outflows, primarily to Binance’s actions. Bunin suggests Binance’s withdrawal of capital to Layer 1 is the leading cause. The massive amount of capital Binance held on Layer 2 networks raises questions about potential incentives or internal balancing issues across their supported chains. The situation underscores the complexities and risks inherent in the rapidly evolving cryptocurrency landscape. The future performance of Base remains uncertain, highlighting the volatile nature of the Layer 2 market and the importance of careful monitoring of capital flows.
