Coinbase’s Layer 2 solution, Base, which was once a top performer in 2024, has seen a dramatic shift in momentum. In 2025, Base has recorded over $4.3 billion in net capital outflows through cross-chain bridges — a sharp reversal from its $3.8 billion net inflow last year.
Ethereum Registers $8.5B Net Inflow, Reclaims Market Leadership
While Base experiences a slowdown, Ethereum is on a powerful rebound. The leading smart contract blockchain has registered $8.5 billion in net inflows year-to-date, making up for last year’s $7.4 billion net outflow.
Ethereum’s renewed dominance reflects growing investor confidence, institutional staking interest, and increased Layer 1 network activity following ETF momentum and upgrades to validator efficiency.
Why Base is Losing Ground: Key Factors
Base’s decline appears closely tied to Binance’s strategic capital withdrawals. Liquidity once locked in Base has been redirected back to Layer 1 Ethereum, likely for yield farming, LST staking, or upcoming altseason opportunities.
The cumulative supply of stablecoins on Base has also stagnated at just above $4 billion since mid-May, according to Artemis Terminal data. This plateau in liquidity mirrors declining on-chain trading volumes and a cool-off in DeFi participation across Base.
In 2024, Base surged with user activity, fueled by Coinbase’s support, low fees, and aggressive DeFi onboarding. But 2025 tells a different story — one of slowing momentum and capital flight.
Bridging Activity: A Vital Indicator for Blockchain Growth
Cross-chain bridges are essential for blockchain interoperability, allowing assets to move between networks. Net flows via bridges serve as a real-time proxy for user and developer sentiment, liquidity allocation, and platform stickiness.
Ethereum’s strong inflows suggest that investors are consolidating back to the Layer 1 base chain, either for security, yield, or long-term utility. Meanwhile, Base’s net outflows indicate waning traction, especially amid competitive Layer 2 environments with emerging zk-rollups and modular chains.
Ethereum’s Comeback Overshadows Base’s Decline
With a $4.3B exodus from Base and $8.5B flowing back into Ethereum, the tide has clearly turned in favor of the more mature, battle-tested ecosystem. While Base still retains over $4 billion in stablecoins, it will need renewed developer and user engagement to reignite momentum.
For now, Ethereum is once again the gravitational center of the smart contract economy.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.