Layer 2 Ethereum network Base sees 370% growth, driven by dApps like Aerodrome and Uniswap.
Base, a Layer 2 Ethereum network developed by Coinbase, has recently achieved a significant milestone by surpassing $2 billion in total value locked (TVL). This marks a 370% increase since the beginning of the year, showcasing robust growth and user engagement.
Total Value Locked (TVL) is a key metric in the world of decentralized finance (DeFi). It represents the total amount of assets that are currently being staked or locked in a particular platform. A higher TVL indicates more trust and activity within the network, as users are willing to commit their assets to it.
Since its launch in August 2023, Base has quickly climbed the ranks to become the second-largest optimistic rollup, trailing only behind Arbitrum. An optimistic rollup is a type of Layer 2 solution that helps scale Ethereum by processing transactions off-chain, thereby reducing congestion and fees.
Base's TVL has grown from $430 million at the start of the year to over $2 billion. This growth is largely attributed to the success of decentralized applications (dApps) like Aerodrome and Uniswap. Aerodrome alone accounts for over $1 billion of the TVL, while Uniswap contributes $220 million.
Base's growth highlights the importance of scalability solutions and the role of decentralized exchanges in driving network activity. As more users seek efficient and cost-effective platforms, Layer 2 solutions like Base are likely to continue gaining traction. Investors and developers should keep an eye on emerging networks and dApps that demonstrate strong user engagement and innovative solutions, as these are often indicators of future success in the rapidly evolving blockchain landscape.
