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Coinbase's Base Hits $2bn TVL, Challenging Layer 2 Rivals

Coinbase's Base Hits $2bn TVL, Challenging Layer 2 Rivals

Sep, 27 2024 19:54
Coinbase's Base Hits $2bn TVL, Challenging Layer 2 Rivals

Base, Coinbase's Layer 2 solution, has surpassed $2 billion in Total Value Locked (TVL). This milestone positions it as the second-largest optimistic rollup in the cryptocurrency market. The achievement signals growing confidence in Base as an Ethereum scaling solution.

Data from DeFiLlama shows Base's TVL at $2.116 billion.

This marks a 370% increase from $430 million at the start of 2024. The TVL includes $3.63 billion in stablecoins and comprises $671.21 million in 24-hour trading volume.

Base now trails only Arbitrum among optimistic rollups on Ethereum. It leads in user activity with the highest number of active addresses and also tops daily transactions among its peers. Recent data reveals 1.1 million interacting users on Base in a single day. The platform registered 8,335 new wallet addresses during the same period, this growth is largely attributed to other protocols on the network.

Coinbase launched Base in August 2023. The aim was to expand into the decentralized finance (DeFi) ecosystem. Base processes transactions off-chain as an optimistic rollup and then submits periodic summaries to the Ethereum mainnet.

This approach reduces congestion and lowers transaction costs. High user activity has driven Base's recent growth.

Its TVL jumped from $1.6 billion on August 24, 2024, to over $2 billion in weeks.

Analysts predict further growth for Base. Some suggest its TVL could exceed $3 billion by year-end. This projection assumes current momentum continues.

Key protocols have contributed to Base's success. Aerodrome surpassed $1 billion in total deposits by September 26. Uniswap has also played a significant role, adding over $220 million in deposits over the past year. Base's rapid growth underscores Coinbase's strategic DeFi expansion. The platform's user-friendly interface attracts users with its low transaction costs further boost its appeal.

The surge in Base's TVL reflects broader trends in the Layer 2 market. It highlights growing demand for scalable blockchain solutions. As competition intensifies, Base's performance will be closely watched by industry observers.

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