The Ethereum layer-2 network Base has seen its total value locked (TVL) surpass $8 billion, achieving this milestone just days after overtaking Optimism’s OP Mainnet. This remarkable growth solidifies Base’s position as a leading player in the Ethereum scaling ecosystem.
Base’s Impressive TVL Growth
According to data from L2Beat, Base’s TVL reached $8.05 billion as of June 10. This includes $2.14 billion in canonically bridged value, representing assets locked on Ethereum to be used on Base, and $5.92 billion in natively minted assets. The platform’s rapid ascent in TVL highlights its growing influence and adoption within the blockchain community.
| Date | TVL | Breakdown |
|---|---|---|
| June 10, 2024 | $8.05 billion | $2.14 billion in bridged value; $5.92 billion in natively minted assets |
Base’s rapid rise has seen it surpass Optimism’s OP Mainnet, positioning it as the largest chain within the Superchain ecosystem. Now, it stands as the second-largest Ethereum scaler by TVL, trailing only Arbitrum One, which holds $18.27 billion in TVL.
| Network | TVL | Ranking |
|---|---|---|
| Arbitrum One | $18.27 billion | Largest Ethereum scaler by TVL |
| Base | $8.05 billion | Second-largest Ethereum scaler |
| OP Mainnet | Below Base | Surpassed by Base in TVL |
Base first reached the $1 billion TVL mark on February 27, just seven months after its launch in August 2023. Since then, it has experienced a phenomenal growth rate, increasing its TVL by eight times in the last 104 days.
Leading in Transactions and Profits
Base’s growth is not just in value but also in activity. Over the past month, Base has led all Ethereum layer-2 networks in terms of transactions per second (TPS), averaging 30.36 TPS, surpassing Arbitrum One, which averaged 23.52 TPS. This high transaction throughput indicates robust network usage and demand.
| Metric | Base | Arbitrum One |
|---|---|---|
| Transactions Per Second | 30.36 | 23.52 |
| Total Transactions (Last 30 Days) | 64.86 million | – |
In addition to its high transaction volume, Base has also been highly profitable. According to a Dune Analytics dashboard by “niftytable,” Base generated the highest on-chain profits among Ethereum layer-2 networks over the past three months. In March alone, Base recorded a record $16.9 million in profits.
Although on-chain profits for Base dropped by 58.6% in May to $6.98 million, it still outperformed other Ethereum layer-2 networks. For comparison, Optimism’s OP Mainnet recorded $1.57 million in profits in the same month.
| Month | Base Profits | OP Mainnet Profits |
|---|---|---|
| March 2024 | $16.9 million | – |
| May 2024 | $6.98 million | $1.57 million |
Much of Base’s recent profitability can be attributed to the surge in memecoin trading earlier in 2024. However, this popularity has also brought challenges, including a significant increase in phishing scams on the network. Between January and March, there was an 18-fold increase in funds stolen from such scams.
| Period | Increase in Phishing Scams | Details |
|---|---|---|
| January to March 2024 | 18-fold increase | Attributed to memecoin trading surge |
Looking ahead, the future of Ethereum layer-2 scaling solutions like Base appears bright. Analysts at asset manager VanEck predict that Ethereum layer-2 networks will collectively reach a market cap of $1 trillion by 2023. This forecast underscores the significant potential and growing importance of layer-2 solutions in the broader cryptocurrency ecosystem.
| Projection | Market Cap | Timeline |
|---|---|---|
| Ethereum Layer-2 Networks | $1 trillion | By 2023 |
Base’s recent achievements highlight its role in this growing sector. The platform’s ability to attract and lock significant value, coupled with its leading transaction throughput and profitability, positions it as a major player in the future of decentralized finance (DeFi) and blockchain technology.
Base’s ascent to over $8 billion in TVL marks a significant milestone in the evolution of Ethereum layer-2 networks. Surpassing Optimism’s OP Mainnet and becoming the second-largest Ethereum scaler in TVL demonstrates Base’s robust growth and increasing adoption. As it continues to innovate and expand, Base is set to play a crucial role in the future of blockchain scalability and DeFi.
With its high transaction volume and profitability, Base is not just growing in size but also proving its economic viability and attractiveness to users and developers. As Ethereum layer-2 networks continue to evolve, Base’s journey will be one to watch closely.
Featured image credit: DALL-E by ChatGPT