Base Surges Past $2 Billion in TVL as User Activity Soars

Ethereum Layer-2 scaling solution Base Network has hit a major milestone as it topped $2 billion in Total Value Locked

Base Network, Coinbase’s Layer 2 Ethereum solution, has recently crossed the $2 billion milestone in Total Value Locked (TVL). This surge in TVL reflects increased user activity and sustained engagement with Decentralized Applications (dApps) on the platform. The growing TVL signals rising confidence in the network’s scalability and potential role in the broader crypto ecosystem.

Base Ascension As An Optimistic Rollup DApp

Base operates as an optimistic rollup, processing transactions off-chain and periodically posting them to the Ethereum mainnet. Launched in 2023, the network has rapidly gained traction by offering lower transaction fees and faster processing times. This structure lightens Ethereum’s load and enhances throughput. This has been the major driver of its rapid adoption by developers and users. 

This achievement places Base as the second-largest optimistic rollup by deposits, trailing only Arbitrum. Starting the year with a modest $430 million, Base has skyrocketed by 370%, now holding $2.08 billion, according to DeFiLlama.

While Arbitrum still leads in TVL among optimistic rollups, Base has surged ahead in user activity. Recently, it outperformed in metrics as it raked in 4.5 million transactions in a single day. This notable record cements its position at the forefront of optimistic rollups and Ethereum L2s

Base Fuels DeFi’s TVL Resurgence

Base’s remarkable growth in TVL is typically propelled by the decentralized exchange Aerodrome, which accounts for over $1 billion in deposits. Uniswap also plays a pivotal role, contributing around $220 million. 

Intriguingly, it was said that L2 networks, including Base, have largely contributed to the Decentralized Finance (DeFi) comeback. DeFi is experiencing a strong resurgence, with key metrics like active loans and TVL rebounding from 2023 lows. For context, lending plays a pivotal role in the decentralized finance landscape. It enables investors to lend their digital assets to borrowers in exchange for interest payments. 

Active loans have risen to $13.3 billion, up from a low of $3.1 billion in early 2023. This was after peaking at $22.2 billion during the 2021 bull run. Similarly, TVL in DeFi has surged 160% from $37 billion in late 2023 to $96.5 billion. This renewed growth highlights the sector’s recovery.

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