Circle’s USDC burning affects the total value of the locked underlying network Cryptocurrency scrgruppen

The layer 2 blockchain incubated by Coinbase, Base, has seen a significant rise, even briefly outperforming the Ethereum mainnet. Based on Optimistic Rollup and developed on the Ethereum network, Base uses OP Stack technology which has increased its appeal due to the growing demand and popularity of alternatives in the ecosystem.

However, TVL has taken a huge hit in the past week.

• According to data from L2Beat, the total value locked in Base Network dropped more than 18.28% to $437 million in the past seven days.
• Important It decreases The Total Value Locked (TVL) of Base can mainly be attributed to the intense burning of Base USDC on September 29.
• Data from Dune Analytics Indicates That number dropped from 160 million to just 29.84 million in one day.
• This comes after fintech company and stablecoin issuer Circle announced the launch of USDC earlier last month.
• As a result, Matter Labs’ zero-knowledge (zk)-based scaling solution – zkSync Era – with a TVL of $476 million, has surpassed the base, now standing in fourth place.
• Among the top five pools, Base is the only project in the red, while Arbitrum One and OP Mainnet are up 10.12% and 8.29%, with TVLs of $6.17 billion and $2.80 billion, respectively.
• Furthermore, zkSync Era’ TVL price also rose by more than 15% during the same period.
• Despite the decline in TVL, Base remains a strong contender in the space.
• Since its inception, the network has generated more than $459 million.