Base Network Surpasses $2 Billion TVL Milestone, Driven by DeFi Growth
Base, the Layer 2 Ethereum network developed by Coinbase, has achieved a major milestone, surpassing $2 billion in total value locked (TVL). This makes it the second-largest optimistic rollup by deposits, trailing just behind Arbitrum.
According to data from DeFiLlama, Base’s TVL reached $2.08 billion, a massive increase from $430 million at the start of the year—representing a 370% year-to-date growth. Launched in August 2023, Base operates as an optimistic rollup, processing transactions off the Ethereum mainnet and posting data periodically on-chain, helping to enhance Ethereum’s efficiency and transaction throughput.
Aerodrome Fuels Base's Growth
The surge in Base’s TVL has been driven primarily by the decentralized exchange Aerodrome, which holds over $1 billion of the network's total deposits. Uniswap also plays a significant role, contributing around $220 million to Base’s TVL.
While Arbitrum remains the leader in TVL among optimistic rollups, Base has outperformed in user activity, boasting higher metrics for active addresses and daily transactions, according to The Block.
DeFi Sees Strong Recovery
The DeFi sector, which has experienced a resurgence, shows significant growth in key indicators such as active loans and TVL. Active loans have reached $13.3 billion, a level last seen in early 2022. This is a considerable recovery from the low of $3.1 billion in January 2023.
Similarly, TVL in DeFi, which suffered an 80% decline from its November 2021 peak of $180 billion to $37 billion in late 2023, has now rebounded by 160%. DeFiLlama reports that TVL currently stands at approximately $96.5 billion.
Coinbase Pushes for Crypto Regulation Clarity
Amidst this growth, Coinbase has urged a federal appeals court to pressure the U.S. Securities and Exchange Commission (SEC) to develop clearer crypto regulations. Coinbase argues that the SEC has made it difficult for the exchange to comply with regulations, leading to legal battles. The exchange secured a partial victory against the SEC earlier this month, potentially gaining access to important documents about the SEC’s classification of tokens as securities.
