Base's Dominance in the L2 Ecosystem and Its Implications for 2026

In 2025, Base emerged as the uncontested leader in the Ethereum Layer 2 (L2) ecosystem, driven by explosive network growth, unparalleled revenue capture, and a groundbreaking integration of the creator economy. As the crypto market enters 2026, these factors position Base not just as a technical success story but as a foundational asset for investors seeking exposure to the next wave of decentralized innovation.

Network Growth: A 24x YoY Surge and Strategic Distribution

Base's blockchain transaction volume grew 24 times year-over-year in 2025, processing over 4.4 billion cumulative transactions by December. This growth was fueled by its unique distribution advantage: integration with Coinbase, the largest U.S. centralized exchange, which provides access to 9.3 million monthly active trading users. The network's dominance in stablecoin transfers further underscores its utility, with Base capturing 41% of the market share in December 2025. Such metrics highlight Base's role as a critical infrastructure layer for payments and decentralized applications, a position that is likely to strengthen in 2026 as adoption of tokenized assets accelerates.

Revenue Capture: 62% of L2 Revenue and a DeFi Powerhouse

Base's financial performance in 2025 was equally impressive. The network generated $75.4 million in year-to-date on-chain revenue, accounting for 62% of the total L2 revenue of $120.7 million. This dominance extended to DeFi, where Base's total value locked (TVL) reached $4.63 billion, or 46% of the entire L2 market. Key revenue drivers included partnerships with projects like Aerodrome, Morpho, and Virtuals, which saw Morpho's TVL surge 1906% year-to-date. These figures reflect a network effect that is difficult for competitors to replicate, particularly as Base's integration with Coinbase ensures a steady flow of liquidity and user activity.

The rebranded Base App, formerly Coinbase Wallet, has become a linchpin of Base's strategy to dominate the creator economy. By December 2025, the app had facilitated $6.1 million in earnings for creators through Zora's tokenization model, enabling monetization without geographic or follower restrictions. The app's features-such as Base Pay for instant USDC transactions, a universal identity system via Base Account, and integration with Farcaster for decentralized social interactions- create a closed-loop ecosystem where creators can tokenize content, earn tips, and trade assets seamlessly. Additionally, the app's "trading-first" design, which prioritizes copy-trading, leaderboards, and multi-asset feeds, aligns with the growing demand for finance-centric tools among crypto-native users.

Implications for 2026: A Must-Own Asset

Base's trajectory in 2025 sets a clear precedent for 2026. Its 24x YoY transaction growth and 62% revenue share demonstrate a network effect that is both scalable and defensible. Meanwhile, the Base App's creator economy features-backed by Coinbase's user base and infrastructure-position it as a gateway for mainstream adoption of tokenized content. As institutional and retail demand for decentralized finance and social platforms converges, Base's dual focus on utility and monetization makes it a must-own asset for investors targeting the next phase of crypto adoption.