Base, a layer-2 scaling solution for Ethereum, has achieved a remarkable milestone by surpassing $500 million in total value locked (TVL) across various decentralized finance (DeFi) protocols. This impressive feat comes just six weeks after the mainnet launch of Base, which relies on Optimism’s OP Stack technology.
According to L2Beat, an esteemed platform that monitors layer-2 performance, Base’s TVL reached $534 million as of September 23, 2023, accounting for 5.17% of the overall L2 market share. Notably, this accomplishment is even more significant considering the lackluster performance of Ethereum (ETH), Optimism (OP), and other prominent DeFi tokens in recent months.
Base functions as an Ethereum-based L2 network with a primary goal of enabling fast, cost-effective, and secure transactions for DeFi users. Boasting support from Coinbase—one of the world’s largest cryptocurrency exchanges—and endorsed by popular DeFi protocols like Uniswap, Compound, Aave, and Maker—Base showcases notable growth since its August 2023 launch.
On September 14th alone, it processed over 1.88 million transactions—a figure that outpaced all competing L2 solutions. Additionally, when measuring total transactional volume within a single day of activity, Base surpassed Avalanche (AVAX), Optimism (OP), and Tron (TRX) according to DefiLlama—an authoritative blockchain data tracker.
Ethereum’s Base Outperforms Solana And Other Veteran Smart Contracts Platforms
Base has experienced a rapid increase in Total Value Locked (TVL), surpassing Solana (SOL), a well-established smart contracts platform that has been hailed as an Ethereum competitor. According to DefiLlama, as of September 23, 2023, Solana’s TVL stood at $310.43 million, slightly lower than Base’s impressive $370.29 million.
One of the key factors attributing to Base’s success is its compatibility with Ethereum, which remains the dominant platform for DeFi applications. With Base, users can seamlessly interact with their favorite DeFi protocols without the need to switch blockchains or compromise on security.
Notably, Base stands out among other Layer 2 (L2) platforms by leveraging Optimism’s OP Stack technology based on optimistic rollups, ensuring scalability and interoperability. Base is currently the undisputed leader among L2 platforms launched within the past two years, ahead of only Optimism and Arbitrum.
Base does face some challenges. The team hasn’t announced any immediate plans for launching a governance token, potentially limiting community engagement and innovation. While not ruling out this possibility entirely, Coinbase’s Chief Legal Officer Paul Grewal did not provide specifics either.
Additionally, users must exercise caution regarding scammers who offer fake BASE tokens through unauthorized airdrops or reward programs—a ploy used to steal users’ cryptocurrencies. It is essential to note that Base does not possess an official token nor endorse such deceptive schemes.
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