Layer 2 blockchains were meant to improve scalability on the Ethereum blockchain but Standard Chartered estimates that Base has reduced Ethereum’s market cap so far by about US$50 billion ($66.6 billion).
Ethereum’s (ETH) underperformance is expected to continue as the second largest digital asset by market cap continues to suffer structural decline, says Standard Chartered’s head of digital assets, Geoff Kendrick.
This is mainly due to the expectation that Coinbase’s layer 2 blockchain, Base, will continue to erode away Ethereum's market cap.
