Base, the Layer 2 Ethereum network developed by Coinbase, has crossed the $2 billion milestone in total value locked (TVL), making it the second-largest optimistic rollup by deposits, just behind Arbitrum.
Data from DeFiLlama shows that Base’s TVL reached $2.08 billion, a significant increase from approximately $430 million at the beginning of the year, representing a 370% growth year-to-date.
Launched in August 2023, Base operates as an optimistic rollup, which processes transactions off the Ethereum mainnet and only periodically posts data on-chain.
This approach reduces the load on Ethereum, enhancing its transaction throughput and efficiency.
Base’s Growth Driven by Aerodrome
The growth in Base’s TVL has been primarily driven by the decentralized exchange Aerodrome, which accounts for over $1 billion of the total deposits.
Uniswap also plays a key role, contributing around $220 million.
Despite Arbitrum leading in TVL among optimistic rollups, Base has outperformed in terms of user activity.
Metrics such as active addresses and daily transactions have positioned it at the forefront of the optimistic rollup sector, according to data from The Block.
As reported, DeFi appears to be experiencing a resurgence, as key indicators such as active loans and TVL show significant growth from their 2023 lows.
For one, active loans have climbed to approximately $13.3 billion, levels not seen since early 2022.
DeFi lending, which allows investors to lend their crypto holdings to borrowers in exchange for interest, is a crucial metric for assessing DeFi participation and overall market health.
During the 2021 crypto bull run, DeFi active loans peaked at $22.2 billion, coinciding with Bitcoin and Ethereum nearing $69,000 and $4,800, respectively.
However, this figure plummeted to around $10 billion by March 2022 and further to $3.1 billion in January 2023.
Since hitting its low last year, the sector has rebounded significantly, with active loans rising back to $13.3 billion.
TVL in DeFi also suffered a dramatic decline last year, falling 80% from its November 2021 peak of $180 billion to approximately $37 billion by October 2023.
However, the sector has since seen a remarkable recovery of around 160%, with TVL now standing at roughly $96.5 billion, according to DefiLlama.
Coinbase Asks Court to Pressure SEC Over Crypto Regulations
Just recently, Coinbase urged a federal appeals court in Philadelphia on Monday to pressure the US Securities and Exchange Commission (SEC) to create new crypto rules.
Coinbase appealed to the court, that the SEC had made it impossible for it to operate and comply with regulations.
Eugene Scalia, a lawyer for Coinbase, said the SEC had been “arbitrary and capricious.”
The regulator has not been giving Coinbase clarity on how to register and comply with U.S. laws, Scalia added.
Coinbase sued the SEC last year, demanding rules that clarify standards for determining when cryptos are securities.
However, the SEC denied its claims in December, disagreeing that the current crypto regulations are “unworkable.”
Earlier this month, the exchange secured a partial victory against the SEC, potentially gaining access to critical documents regarding the agency’s classification of tokens as securities.
The post Coinbase’s Base Surpasses $2 Billion Total Value Locked, Ranks as Second-Largest Optimistic Rollup appeared first on Cryptonews.
