TL;DR
- Base’s TVL Surpasses $2B: Base, Coinbase’s Layer 2 Ethereum network, has reached over $2 billion in total value locked (TVL), marking a 370% growth from $430 million at the start of the year.
- Aerodrome’s Major Contribution: The decentralized exchange Aerodrome is the primary driver of this growth, contributing over $1 billion to Base’s TVL.
- DeFi Sector Resurgence: Base’s growth is part of a broader DeFi resurgence, with active loans and overall TVL in DeFi significantly rebounding from 2023 lows.
Base, the Layer 2 Ethereum network developed by Coinbase, has achieved a significant milestone by surpassing $2 billion in total value locked (TVL). This achievement marks a substantial increase from approximately $430 million at the beginning of the year, representing a remarkable 370% growth year-to-date.
The primary driver behind Base’s impressive growth is the decentralized exchange Aerodrome, which accounts for over $1 billion of the total deposits.
Aerodrome’s contribution underscores its pivotal role in the network’s ecosystem, attracting a significant portion of the TVL. Additionally, Uniswap has also played a crucial role, contributing around $220 million to Base’s TVL.
Base’s Growth and Efficiency
Launched in August 2023, Base functions as an optimistic rollup, handling transactions outside the Ethereum mainnet while regularly submitting data on-chain. This method alleviates the burden on Ethereum, improving its transaction capacity and overall efficiency.
Despite Arbitrum leading in TVL among optimistic rollups, Base has outperformed in user activity. The metrics of active addresses and daily transactions have placed it at the leading edge of the optimistic rollup landscape.
DeFi Resurgence
The growth of Base is part of a broader resurgence in the decentralized finance (DeFi) sector. Key indicators such as active loans and TVL have significantly increased from their 2023 lows.
Active loans have surged to around $13.3 billion, reaching heights not observed since the beginning of 2022. Additionally, the TVL in DeFi has experienced a significant rebound, currently estimated at about $96.5 billion, as reported by DefiLlama.
Coinbase’s Legal Battle with SEC
In related news, Coinbase has recently urged a federal appeals court in Philadelphia to pressure the SEC to create new crypto rules. Coinbase has taken its case to court, arguing that the SEC’s actions have made it unfeasible for the company to operate within regulatory guidelines.
Eugene Scalia, representing Coinbase, criticized the SEC for being “arbitrary and capricious,” and noted that the regulator has failed to provide clear guidance on how Coinbase can register and comply with U.S. laws.
Coinbase’s appeal highlights the ongoing regulatory challenges faced by the crypto industry. The exchange secured a partial victory against the SEC earlier this month, potentially gaining access to critical documents regarding the agency’s classification of tokens as securities.
