Base, the Ethereum Layer-2 network incubated by Coinbase, is bleeding value. Total value locked has fallen by $1.4 billion in recent weeks.
TVL dropped from about $5.3 billion in January to roughly $3.9 billion today. That’s a 26% decline in a matter of weeks.
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Growing criticism from builders
The decline comes amid growing criticism of Base’s strategy and execution.
Builders are questioning the chain’s direction. Critics say the product roadmap is unclear.
The execution has been spotty.
Coinbase leadership has acknowledged the missteps. They’ve defended the long-term vision. But the numbers don’t lie. Users and capital are leaving.
Competitive L2 landscape
Base was supposed to be Coinbase’s answer to the Layer-2 wars.
A network that combined Coinbase’s brand and distribution with Ethereum’s security. The early growth was impressive.
But the momentum has stalled. The broader L2 landscape is increasingly competitive. Arbitrum and Optimism have established ecosystems.
New entrants are launching with aggressive incentives. Base is struggling to differentiate.
Base at a crossroads
The criticism from builders is particularly concerning. If developers are frustrated, they’ll build elsewhere.
And without developers, a chain has no future. Coinbase has the resources to turn things around. But it needs a clear strategy.
And it needs to execute better. The $1.4 billion outflow is a warning sign. Base isn’t dead. But it’s at a crossroads.
The next few months will determine whether it becomes a major player or a footnote in L2 history.
Crypto market researcher and external contributor at Kriptoworld
Wheel. Steam engine. Bitcoin.
📅 Published: February 21, 2026 • 🕓 Last updated: February 21, 2026
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