Base Chain TVL surpasses $4.6 billion: How do AI narratives and stablecoin demand jointly drive growth?

Recently, Coinbase’s Layer 2 network Base has delivered impressive on-chain results. According to DefiLlama data, as of May 7, 2026, the total value locked (TVL) on the Base chain has reached $4.64B, with DEX trading volume in the past 24 hours at $862 million, and a cumulative DEX trading volume of $5.12B over the past 7 days. As TVL rebounds, multiple tokens within the Base ecosystem, such as VIRTUAL, CLANKER, and DEGEN, are experiencing widespread gains, resonating with on-chain data and market wealth effects.

From Hotspot Rotation to Compliance Narrative: How Has Base’s Narrative Logic Shifted?

Since mid-2025, the Base ecosystem has undergone a significant restructuring of its narrative framework: shifting from reliance on rapid rotation around “Tornado-style” hot topics to a sustained narrative centered on “compliant stablecoins + on-chain US stocks.” The listing of Circle has fostered optimistic institutional expectations for compliant stablecoins, providing Base with a core narrative that differentiates it from other L2s.

This shift means that Base no longer solely depends on short-term meme hype and emotional trading, but is gradually establishing a value narrative anchored by assets and market consensus. Meanwhile, Base’s announced 2026 strategy focuses on tokenized markets, stablecoin payments, and developer ecosystem building, further reinforcing the “compliance-first” narrative positioning. The continuity and stability of this narrative are key indicators of a blockchain’s long-term vitality—Base’s narrative transition provides fundamental support for a rebound in TVL.

Why Has the AI Narrative Become the Biggest Variable in This Round of Base’s Growth?

The strong performance of AI concept tokens is a direct catalyst for this round of explosive growth in the Base ecosystem. VIRTUAL’s market cap has surpassed $500 million, with a 9.8% increase in the past 24 hours; CLANKER’s market cap exceeds $28.7 million, with a 21% rise over the same period—these two AI concept tokens’ linked surges reflect market ongoing attention to the “Base Ecosystem AI Crown.”

Deeper reasons lie in the evolution of AI application scenarios on-chain from concept to practical deployment. SKALE and Base jointly launched a dedicated Layer 3 network for AI agents, combining advantages like gasless transactions and instant confirmation with Base’s liquidity pools. Mira Network aims to build verifiable AI infrastructure on Base, targeting trust issues of AI models in large-scale scenarios. Virtuals Protocol has incubated over 11,000 AI agents covering virtual idols, trading advisors, game engines, and more. These tangible applications turn the AI narrative from abstract hype into quantifiable growth in on-chain activity.

How Does Stablecoin Demand Drive Liquidity Expansion on the Base Chain?

Stablecoins are a core indicator of a blockchain’s payment and transaction activity. On Base, stablecoin demand and the AI narrative exhibit a clear synergy: increased on-chain activity drives stablecoin settlement needs, while ample stablecoin liquidity in turn boosts DEX trading activity. The underlying liquidity engine Aerodrome continues to operate efficiently, with nearly $26B in trading volume over the past 7 days serving as strong evidence.

Looking across the industry, by February 2025, the total stablecoin supply reached $214 billion, with annual transfer volumes of up to $35 trillion—twice Visa’s annual transaction volume. In this trillion-dollar market, Base, leveraging Coinbase’s compliant ecosystem, is becoming an important infrastructure for stablecoin on-chain payments and trading—this is a deeper reason why it stands out in the Layer 2 competition.

How Does Coinbase’s User Ecosystem Feed Growth Momentum into the Base Chain?

As Coinbase’s Layer 2 solution, Base naturally benefits from Coinbase’s hundreds of millions of registered users. The launch of the Base app further lowered the barrier for users to access the on-chain world, with smart wallets surpassing one million users in the short term, becoming a core catalyst for user growth on Base. In July 2025, Base hit a record high of 3.5 million daily active users.

Notably, on-chain activity is also rising in tandem. In 2025, the total DEX trading volume on Base exceeded $140 billion. Circle’s latest data shows that Base is the most active Layer 2 network for stablecoin supply. The large user base within the Coinbase ecosystem provides Base with a unique cold-start advantage over other L2s—this structural barrier ensures ongoing competitive strength in acquiring new users.

Where Does Base’s Competitive Edge Lie Between Arbitrum and Optimism?

The competitive landscape of Layer 2 in 2025 has shifted significantly. In terms of DeFi TVL, Base performed outstandingly, surpassing Arbitrum One in January 2025, reaching a DeFi TVL of $4.63 billion, accounting for 46% of the entire L2 market. Its market share has climbed from 33% at the start of the year to 46% by year-end, with a steep growth curve.

From the growth trend, Base is on an upward trajectory, while Optimism’s pace is relatively steady, and Arbitrum is in a transitional phase showing signs of recovery after recent losses. Base’s core competitive advantages include: Coinbase’s compliance endorsement and user gateway, a differentiated narrative centered on compliant stablecoins and RWA tokenization, and a developer ecosystem built around AI agents. These three factors form barriers that distinguish Base from other L2s.

What Does the Divergence in Ecosystem Token Market Caps Reveal About Capital Allocation?

During this round of TVL recovery, ecosystem tokens show clear market cap differentiation. VIRTUAL’s market cap has surpassed $500 million, significantly ahead of others like CLANKER ($28.7 million), DEGEN ($26.5 million), and BNKR ($35 million). This market cap gap indicates that capital is increasingly flowing toward leading narratives like AI.

The silent shift from “meme-driven” to “application value-driven” is redefining the internal capital allocation logic within the Base ecosystem. This transition from early “all-over-the-place” hype to a more mature phase emphasizing application scenarios and value anchoring reflects a maturing ecosystem. For observers, improved capital efficiency within the ecosystem is a key indicator of health for Base.

Can Base’s Current Growth Continue? What Are the Key Variables?

Assessing the sustainability of Base’s growth depends on three core variables:

1. Whether the AI narrative can continue to produce verifiable application value rather than remain at the conceptual hype stage.
2. Whether large-scale adoption of stablecoin payments can make substantial breakthroughs within Base’s 2026 strategic framework.
3. The conversion efficiency and retention rate of Coinbase users transitioning to Base—whether daily active users can further increase from peak levels.

On a macro level, institutional investment in RWA and stablecoin sectors, as well as the evolution of global crypto regulation, will also profoundly influence Base’s long-term development.

Summary

With TVL surpassing $5.12B and DEX trading volume remaining high, Base has re-entered a growth trajectory after market adjustments. From a narrative perspective, Base has completed a shift from hot-topic rotation to a new narrative of “compliant stablecoins + AI applications + on-chain US stocks.” From a growth driver standpoint, the resonance between AI narratives and stablecoin demand has driven on-chain activity upward. In terms of competitive landscape, Base continues to narrow the gap with Arbitrum, now holding 46% of DeFi TVL market share. The divergence in internal token market caps reveals capital shifting from meme-driven hype toward application-driven value. Looking ahead, the depth of AI application deployment, the scale of stablecoin payments, and the quality of user growth will be key variables determining whether Base can move from “phase recovery” to “structural leadership.”

FAQ

Q1: How does Base’s TVL of $350k compare within Layer 2s?

As of May 7, 2026, Base ranks second in TVL among Ethereum Layer 2s, only behind Arbitrum. Since January 2025, Base has surpassed Arbitrum One in DeFi TVL, capturing about 46% of the entire L2 market.

Q2: Why is the AI narrative so important for Base’s growth?

The core of the AI narrative lies in its potential for large-scale application deployment. From Virtuals Protocol’s over 11,000 AI agents to Mira Network’s verifiable AI infrastructure, AI applications are moving from proof-of-concept to actual on-chain interactions—these concrete activities directly contribute to increased on-chain trading volume and TVL.

Q3: What role do stablecoins play in Base’s growth?

Stablecoins are the foundation of liquidity on Base. On-chain activity directly drives stablecoin settlement needs, and ample stablecoin liquidity in turn promotes more trading—forming a positive feedback loop. Base’s 2026 strategy explicitly prioritizes stablecoin payments as a core development focus.

Q4: How has the competitive landscape between Base, Arbitrum, and Optimism changed?

In 2025, Base overtook Arbitrum One in DeFi TVL, while Optimism’s growth slowed overall. Base’s differentiated advantages include Coinbase’s user gateway, a compliance-focused stablecoin narrative, and an AI developer ecosystem.

Q5: What does the divergence in ecosystem token market caps indicate?

The clear “market cap gap” between core AI tokens like VIRTUAL (over $500 million) and other ecosystem tokens (tens of millions of dollars) suggests capital is concentrating on top-tier narratives. This reflects a shift from meme-driven hype toward application value-driven capital allocation within the Base ecosystem.