- The Layer 2 Ethereum network, Base, launched by Coinbase, has recently demonstrated significant growth in total value locked (TVL), now reaching $1.7 billion, according to data from DeFiLlama.
- This 20% increase since early May has enabled Base to overtake OP Mainnet (OP) in TVL, making it the largest entity within the Superchain ecosystem, encompassing various Layer 2 rollups built with the OP Stack software package.
- This remarkable ascent in the network’s value underscores the strengths and expanding adoption of the Base network in the cryptocurrency space.
Base Network experiences a surge in TVL to $1.7 billion, reflecting a 20% growth since May. Learn about the factors contributing to its success and the role of decentralized exchanges in this development.
Key Drivers Behind Base Network’s Success
Since its public introduction in early August 2023, Base has rapidly climbed the ranks to become the third most valuable Layer 2 network by TVL, following Arbitrum (ARB) with $3.81 billion and Blast with $2.26 billion. The network’s swift adoption and user confidence highlight its robust features and reliability, positioning it as a formidable player in the decentralized finance (DeFi) space.
A critical element in Base’s TVL growth is the decentralized exchange Aerodrome, which has seen $714 million in deposits. Additionally, Uniswap has contributed significantly with $312 million in deposits. These platforms have played a pivotal role in attracting users and capital to the Base network, underscoring the network’s utility and appeal.
Comparing Optimistic Rollups and zkRollups
Layer 2 networks including Arbitrum, Blast, Base, and OP Mainnet utilize optimistic rollups to process transactions off-chain, periodically recording transaction data on the Ethereum Blockchain. This method decreases the load on the primary chain, thereby achieving higher transaction throughput. The “optimistic” nature refers to the assumption of transaction validity unless disproven by a “fraud proof,” which then triggers a verification process.
Conversely, zero-knowledge rollups (zkRollups) such as zkSync, Linea, and Scroll utilize cryptographic proofs to validate transaction accuracy before recording them on-chain. These proofs ensure transaction validity upfront, offering a different approach to enhancing Ethereum’s scalability.
Conclusion
The recent surge in Base Network’s TVL to $1.7 billion, achieving a 20% increase since May, underscores the network’s rapid growth and the fundamental role of decentralized exchanges like Aerodrome and Uniswap in this rise. As Base overtakes OP Mainnet to become the largest network within the Superchain ecosystem, it marks a significant milestone in the Layer 2 landscape.
The ongoing competition and innovation between optimistic rollups and zkRollups will be essential for Ethereum’s scalability advancements. These developments highlight the growing importance of Layer 2 solutions in mitigating Blockchain congestion and enhancing transaction efficiency. As the ecosystem evolves, stakeholders can expect continued advancements driving the industry forward.
