Crypto News – Base Rises to Prominence: Exploring Its $2.49 Billion Total Value Locked
Crypto News – Base, a Layer 2 Ethereum network developed by Coinbase, has officially become the largest rollup in terms of Total Value Locked (TVL), boasting an impressive $2.49 billion in total deposits. This remarkable achievement positions Base among the top five blockchain networks by TVL, following behind major players like Ethereum, Tron, Solana, and BNB Chain.
Key Metrics and Comparisons
According to data from DeFiLlama, Base’s TVL slightly eclipses that of Arbitrum, which currently stands at $2.39 billion. A significant portion of Base’s TVL is attributed to the decentralized exchange Aerodrome, which accounts for over $1.3 billion in deposits. This growth underscores the platform’s ability to attract substantial liquidity and user engagement.
User Activity and Functionality
Base operates as an optimistic rollup, utilizing the OP Stack to process transactions off the main Ethereum blockchain and periodically commit data back to it. As per The Block’s data dashboard, Base leads in user activity with approximately 1.5 million daily active addresses, marking the highest activity level among Layer 1 rollups. Eden Au, Research Director at The Block, remarked, “Base’s rapid growth underscores the commitment of Coinbase and app developers to realizing Ethereum’s rollup-centric vision, cementing itself as the top Layer 2 by TVL one year after launch.”
Strategic Adjustments for Growth
To accommodate the rising user activity, Base recently increased its block gas target from 10 to 13 Mgas/s. This strategic adjustment aims to gradually expand the network’s capacity and enhance the number of transactions each block can process. Incremental increases are planned weekly, with a final goal of reaching 1 Ggas/s.
Decentralization and Future Developments
While Base has made significant strides, it is still in the early stages of decentralization. Currently categorized as an optimistic stage 0 rollup, it is described as being in the “training wheels” phase. Notably, a fraud-proof system has yet to be implemented, which means users must depend on the block proposer to submit accurate L1 state roots, as highlighted by L2Beat.
FAQ
What is Base and how does it relate to Ethereum?
Base is a Layer 2 rollup solution developed by Coinbase that operates on the Ethereum network. It processes transactions off the main Ethereum blockchain, allowing for faster and cheaper transactions while periodically committing data back to Ethereum.
How much total value locked (TVL) does Base currently have?
As of now, Base has a total value locked (TVL) of $2.49 billion, making it the largest Layer 2 rollup on Ethereum, surpassing Arbitrum’s TVL of $2.39 billion.
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