# Base TVL overtakes Arbitrum as Ethereum’s biggest Layer 2

**Published:** 2026-07-09T15:55:56.589Z  
**Topic:** Layer 2 Scaling  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/58c962b9-2dc1-457b-88b0-6920468b996b

Base now holds $4.94 billion TVL, edging past Arbitrum’s $4.03 billion. See how rollup fees, Dencun upgrades and TVL shifts reshape Ethereum scaling.

Base TVL has risen to $4.94 billion, surpassing Arbitrum One’s $4.03 billion and making Base the largest Ethereum Layer 2 by total value locked【1】. The shift reflects accelerating migration to rollups after the March 2024 Dencun upgrade slashed L2 fees by roughly 90%, prompting users to favor cheaper, faster chains.

| At a glance | |
|---|---|
| TVL (Base) | $4.94 billion |
| TVL (Arbitrum One) | $4.03 billion |
| Fee reduction | ~90 % after Dencun upgrade |
| Daily tx volume (Arbitrum) | >1 million (steady) |

## Why Base surged

Base’s growth is tied to the Dencun upgrade (EIP‑4844) that introduced cheap “blob” data lanes for rollups. By moving bulk transaction data off‑chain, rollups can post only succinct proofs to Ethereum, driving average L2 fees down to under $0.05 and, in some cases, as low as $0.0196【1】. Lower fees have attracted high‑frequency DeFi traders and gaming dApps, boosting the amount of assets locked on Base. The platform’s TVL now exceeds $4.9 billion, overtaking Arbitrum, which had previously led the market with a record 5 million daily transactions in December 2023【1】.

## Competitive landscape

While Base leads in TVL, Arbitrum remains a volume powerhouse, consistently processing over one million transactions per day without congestion【1】. Other rollups such as zkSync Era and Polygon zkEVM continue to grow, with zkSync focusing on account abstraction and Polygon reporting a 63 % QoQ transaction increase in Q1 2025【1】. Together, these solutions protect roughly $36 billion of assets across thousands of dApps, illustrating how Layer 2 scaling is now the backbone of Ethereum’s mass‑market usage【1】.

## What to watch
- **TVL thresholds:** Monitor whether Base’s TVL stays above $5 billion and if Arbitrum can reclaim the lead by breaching $5 billion.
- **Fee trends:** Track average L2 transaction fees post‑Dencun; a further dip could accelerate migration to newer rollups.
- **Bridge activity:** Watch for large ETH or token bridges between L1 and L2, as bridge risk remains a key security concern for users【1】.

Base’s ascendance underscores the effectiveness of Ethereum’s rollup‑centric scaling roadmap: by anchoring security to the base layer while delivering Visa‑scale throughput, Layer 2s are becoming the primary venues for everyday crypto activity. The open question is whether a single mega‑rollup will dominate or a diversified mesh of specialized L2s will persist as the ecosystem matures.

## Sources
1. Forbes — [What Is Layer 2? Your Guide To Blockchain Scaling And Faster Crypto Transactions](https://www.forbes.com/sites/digital-assets/article/what-is-layer-2/)
2. Medium — [DeFi 2.0 Layer 2 Solutions 101: Everything You Need to Know | by coinxes | Medium](https://medium.com/@marketing_30381/defi-2-0-layer-2-solutions-101-everything-you-need-to-know-5c3461018230)

---
Cite as: TrendWatcher, "Base TVL overtakes Arbitrum as Ethereum’s biggest Layer 2", https://www.trendwatcher.in/article/58c962b9-2dc1-457b-88b0-6920468b996b