- Base, a new Layer 2 Ethereum network developed by Coinbase, is making waves as the largest rollup regarding total value locked (TVL).
- With a TVL of $2.49 billion across 366 protocols, Base surpasses Arbitrum, recently marking a significant milestone in the DeFi landscape.
- “Base’s remarkable growth is underpinned by its key decentralized exchange, Aerodrome, which is responsible for over $1.3 billion in deposits,” according to recent insights from DeFiLlama.
The article explores Base’s rise within the Ethereum ecosystem, detailing its impressive total value locked, user activity, and future developmental goals.
Base Emerges as a Leading Layer 2 Solution
Base has rapidly established itself as a frontrunner in the Layer 2 Ethereum network space, primarily due to its innovative use of the OP Stack and its focus on user experience. As of recent reports, Base’s TVL reached $2.49 billion, edging out Arbitrum’s $2.39 billion. This growth illustrates not only user confidence but also the network’s expanding utility in facilitating transactions and decentralized finance (DeFi) protocols. The bulk of its TVL is attributed to the decentralized exchange Aerodrome, which has become a crucial player within the Base ecosystem.
User Engagement and Transaction Capacity on Base
Engagement metrics underscore Base’s formidable presence in blockchain space. With approximately 1.5 million daily active addresses reported, Base leads all Layer 1 rollups, indicating robust community interest and active participation. Notably, Base has achieved a throughput of 70 transactions per second, an impressive feat for a nascent blockchain. According to Jesse Pollak, the project’s lead developer, this performance metric is critical as it directly influences user satisfaction and overall network efficiency.
In response to escalating user activity, Base has taken strategic measures to ensure scalability. Earlier this month, it elevated COINOTAG gas target from 10 to 13 Mgas/s, aiming to accommodate the growing demand for transaction processing. This systematic adjustment showcases Base’s commitment to evolving alongside its user base, with weekly increases planned until a goal of 1 Ggas/s is reached. This phased approach helps ensure that the network can handle increased loads without sacrificing performance.
Addressing Decentralization and Security
While Base has made significant advancements, it’s important to recognize its current limitations in decentralization and security. As an optimistic stage 0 rollup, Base is still navigating the essential stages of development. Currently, it lacks a comprehensive fraud-proof system, placing the responsibility of accuracy on block proposers who must submit precise Layer 1 state roots. This lack of a robust fraud prevention mechanism has raised concerns among early adopters and developers alike, as it highlights potential vulnerabilities within the network.
However, Base’s core development team is proactive regarding these challenges. They have acknowledged the need for enhanced security measures and have indicated that fraud proofs are included in their long-term roadmap. With ongoing development efforts, the team is poised to implement these crucial features that will enhance the network’s reliability and further solidify its appeal to users seeking a secure and efficient Layer 2 solution.
Conclusion
In conclusion, Base is solidifying its presence in the competitive Layer 2 space with a remarkable total value locked and robust user engagement. As it navigates through the challenges of decentralization and security, the commitment of its developers to implement necessary improvements will be critical for its sustained growth. Investors and users alike should closely monitor Base’s progress as it continues to evolve—both in functionality and as a mainstay within the Ethereum ecosystem.
