For the first time since its inception, Base has surpassed the $2 billion mark in total value locked (TVL), with the Coinbase budget-friendly Layer-2 (L2) gaining significant traction in user activity.
This L2 scaling solution, built on the Ethereum blockchain, positions Coinbase to become a formidable player in the decentralized finance (DeFi) sector.
Base Surpasses $2 Billion TVL Milestone
With more than $156 million deposited in the last 24 hours, the TVL for Base has crossed the $2 billion mark, reaching $2.131 billion at the time of this writing. An increase in TVL signifies that more assets are being secured within the ecosystem’s smart contracts, indicating the platform’s success and reliability.
This growth reflects an expanding user base and a broader acceptance of the L2 scaling solution within the DeFi landscape, fueled by rising investor interest and confidence. The TVL has surged nearly 400% year-to-date, with an increase of $849 million since the mainnet was launched in July.
Read More: What is Base Chain? Everything You Need to Know
Notably, Base has rapidly climbed the ranks, overtaking OP Mainnet, according to data from L2Beat, and has become the largest network on Superchain. Additionally, Base is approaching Arbitrum Layer-2, which currently holds a TVL of $2.59 billion.
The growth in Base’s Total Value Locked (TVL) is primarily propelled by the expansion of its ecosystem. Alongside increasing revenue and a growing number of active addresses, Base is experiencing a rise in transaction volume. For example, on September 18, it set a new benchmark with over 4.5 million transactions, largely driven by the popularity of the Basenames domain name service.
Furthermore, the protocols within Base’s ecosystem are critical to its advancement, particularly the Aerodrome decentralized exchange (DEX), which has been instrumental in its upward growth.
Aerodrome Propels Base TVL Expansion
Aerodrome is the top protocol on Base L2, boasting a TVL of $1.018 billion, which has increased by 76% over the past month. Other notable protocols on Base include Uniswap and Aave V3, which may soon integrate Coinbase’s Bitcoin Wrapper, cbBTC.
Aerodrome contributes to nearly half of Base’s TVL, achieved as the DEX successively introduces liquidity pools for meme coins like PEPE and WIF. These offerings have drawn significant investor interest and may continue to attract more as meme coins tap into renewed market enthusiasm leading into Q4 2024.
Add to that, Aerodrome’s Flight School program serves as a growth catalyst, thanks to its incentivized rewards. For each veAERO a user deposits, they receive up to 0.67 veAERO, creating a strong motivation for more capital inflow into the protocol.
Read More: Coinbase Review 2024: The Top Crypto Exchange for Beginners?
Looking forward, products like cbBTC could further enhance momentum for Base. Additionally, Coinbase’s partnership with Morpho aims to introduce a lending model utilizing real-world assets (RWA).
Specifically, Morpho will utilize Coinbase’s authentication framework to establish two asset lending Vaults on the Base L2 platform.
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