• 19 June, 2024
News

Base L2 Network Enters Top Three in TVL Rankings, Flips OP

Base, a Layer 2 Ethereum network incubated at Coinbase, has recently surpassed OP Mainnet in total value locked (TVL). As of early June 2024, Base’s TVL has escalated to $1.7 billion, marking a 20% increase since May. This advancement positions Base as the largest network within the Superchain ecosystem, an assembly of Layer 2 rollups utilizing OP Stack technology.

Detailed TVL Insights

According to the latest data from DeFiLlama, Base has experienced a rapid increase in TVL, now tallying at $1.7 billion. This growth has not only allowed it to overtake OP Mainnet but also to become the third largest Layer 2 blockchain by TVL, trailing only behind Arbitrum and Blast. This development is a testament to the growing confidence and utility that users find in Base’s capabilities.

Substantial Contributions from Aerodrome

Source: DeFiLlama

A major contributor to Base’s increased TVL is the decentralized exchange Aerodrome, which boasts $708 million in deposits. Following closely is Uniswap, with $317 million in deposits. These platforms play a crucial role in enhancing Base’s liquidity and user engagement, further solidifying its position in the market.

Friend.tech Token Falls 20% After Co-Founder Hinted Departure from Base

Technological Efficiency and Security 

Base and other leading Layer 2 chains such as Arbitrum, Blast, and OP Mainnet employ optimistic rollups. This technology allows transactions to be executed off the main Ethereum blockchain, only syncing data periodically to maintain security and efficiency. Optimistic rollups assume transactions are valid by default, requiring computation for verification only when a fraud proof is submitted.

Contrast with Zero-Knowledge Rollups

While Base utilizes optimistic rollups, it stands in contrast to networks that employ zero-knowledge rollups, like zkSync, Linea, and Scroll. These networks provide cryptographic proofs upfront, ensuring transaction validity from the beginning and offering a different layer of security and efficiency.

Base’s ascent to the top of the Layer 2 networks marks a significant milestone in the DeFi landscape. Its continued growth and development could reshape how transactions and applications are managed in the Ethereum ecosystem.

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