The Coinbase’s Layer 2 Base network has experienced an astonishing surge, with its total locked value (TVL) skyrocketing by over 6,000% to reach an impressive $64 million. The rapid growth of the network highlights the surging interest in Layer 2 solutions, as they aim to tackle scalability issues and high fees on Ethereum networks.
Base Network Surpasses $64 Million in TVL
The recent data from L2BEAT has revealed that Coinbase’s Base network has broken past the $50 million milestone in total locked value, reaching $64.15 million. This remarkable achievement reflects a significant 6570.89% increase in just one week. It now stands as the 10th largest project in terms of TVL.
Base, launched by Coinbase for developers on July 13, has been garnering increasing attention in the crypto community. It offers a platform where developers can deploy applications, and various tools for them are now live.
Coinbase’s Base is built on the security of Ethereum and uses Optimism’s fraud-proof roll-up technology, ensuring secure and irreversible transactions. Its scalability allows processing thousands of transactions per second, making it more efficient than Ethereum L1.
Some Reasons Behind the Influx of Activity
The recent influx of activity on the Base network is partly attributed to meme coins, with traders actively engaging in tokens like BALD, COIN, and BASED using the decentralized exchange LeetSwap.
Notably, BALD, possibly inspired by Coinbase CEO Brian Armstrong’s shaved head, has seen an astonishing surge in price, leading to a fear of missing out (FOMO) and enticing users to invest in hopes of quick profits.
This increased interest in the BALD meme coin has indirectly fueled a surge in transaction count and interest on the OP Mainnet, based on the same roll-up technology anchoring the Base network.
Interestingly, traders are already making big gains as the network surges. According to reports from Lookonchain, one trader turned 65 $ETH into 507 $ETH in just one day, earning $826,000. Another trader made a profit of 417 $ETH by investing in $BALD and $OPTISM.
The Base ecosystem also hosts exciting projects like “Base Inu,” a memecoin that calls itself the first-ever Inu token on Base Layer 2.
— Lookonchain (@lookonchain) July 31, 2023
Although Base has seen impressive growth, it’s important for users, especially meme coin fans, to exercise caution. The layer 2 network is still under development, and users need to be mindful of potential risks when connecting and trading meme coins.