Coinbase’s Layer-2 network, Base, has shed more than $4 billion in net outflow past this month as users move funds back across cross-chain bridges. Meanwhile Ethereum has amassed over $8.4 billion in net inflows. The reversal comes after Base led all blockchains for inflows in 2024.
Data compiled by analytics dashboard Artemis show Base sitting on net outflows of about $4.3 billion this year (YTD), compared with a $3.8 billion net inflow last year. Over the same period, Ethereum has swung from a $7.4 billion outflow to an $8.5 billion inflow, regaining its position as the main destination for bridged capital.
Artemis Terminal lists the decline alongside a flattening in Base’s stable-coin supply, which has held just above $4 billion since mid-May. Activity on decentralized exchanges built on Base has slowed in parallel.
Layer-2 data tracker L2BEAT shows the amount of ether deposited on Base falling from 1.82 million ETH in early June to roughly 835,000 ETH today, a drop of around 54 percent in four weeks. Similar pull-backs are visible on other Layer-2s.
“The vast majority is just Binance withdrawing to L1,” Coinbase protocol specialist Viktor Bunin said on X, adding that the exchange had held “an ungodly amount on the L2s.” He noted it was unclear whether incentives or simple rebalancing drove the move.
Cross-chain bridges let traders move tokens between networks, boosting liquidity but also making capital flows volatile.
Analysts say Base’s early incentives drew funds quickly last year; many of those rewards have now tapered off, while Ethereum’s rest-aking narrative and new spot-ETF demand have pulled liquidity back to Layer 1.
Stable-coin watchers point out that Circle’s USDC and MakerDAO’s DAI have seen larger net redemptions on Base than on competitors such as Optimism and Arbitrum. If the exodus continues, protocols built on Base could see yields compress as total value locked declines.
Still, developers argue that lower fees and Coinbase’s exchange on-ramps give Base long-term advantages, especially once market incentives reset. For now, the numbers show momentum has swung firmly back to Ethereum.
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