Coinbase’s L2 Base Becomes Second-largest Optimistic Rollup as It Crosses $2B in TVL

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Coinbase’s L2 Base Becomes Second-largest Optimistic Rollup as It Crosses $2B in TVL

Coinbase’s L2 solution Base has achieved a significant milestone by surpassing $2 billion in Total Value Locked (TVL), positioning itself as the second-largest optimistic rollup in the crypto space after Arbitrum. This accomplishment highlights the growing confidence in the protocol as a robust alternative to other L2 solutions on Ethereum.

According to on-chain data from DeFiLlama, Base’s TVL currently stands at $2.116 billion at the time of writing, marking a 370% increase from the $430 million it recorded at the beginning of 2024. The TVL consists of $3.63 billion in stablecoins, a 24-hour trading volume of $671.21 million, and a revenue of $81.76 million generated within the same period.

L2 Solution Base Surpasses Arbitrum in User Activity

The Coinbase-owned protocol started its journey in August 2023 when the American exchange announced that it is expanding its business into the world of decentralized finance (DeFi) ecosystem.

Leveraging the popularity of the company, Base quickly amassed significant recognition, attracting both investors and developers alike. The protocol was designed to operate as an optimistic rollup that processes transactions off-chain and periodically submitting summaries to the main Ethereum network. This method significantly reduces congestion on the Ethereum chain and lowers transaction costs for users.

As of September 27, Base is the second-largest optimistic rollup on Ethereum, topped only by Arbitrum. Despite the protocol holding the top position in TVL, Base excels in user activity, boasting the highest number of active addresses and daily transactions within this niche.

Thanks to the massive user activities on the platform, Base TVL grew to the current value of over $2 billion within a few weeks of reaching $1.6 billion on August 24, 2024. Analysts estimated it may even cross the $3 billion milestone this year if it continues with this trajectory.

8,335 Wallet Addresses Registered on Base in a Single Day

In terms of active addresses, the number of users who interacted on Base in the past 24 hours reached 1.1 million. DeFiLlama data also shows that a total of 8,335 wallet addresses were registered on the platform during the same period.

The network’s growth has been attributed to the performance of other protocols on Base. According to DeFiLlama, Aerodrome, a decentralized exchange leveraging the protocol’s infrastructure to scale its business, generated over $1 billion of the total deposits on the platform on September 26.

Uniswap has also been a major contributor to Base’s increase in TVL over the past year, recording over $220 million in deposits at press time.next

Coinbase’s L2 Base Becomes Second-largest Optimistic Rollup as It Crosses $2B in TVL