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Base, an Ethereum L2 scaling solution backed by Coinbase, has seen more than $175 million channeled into its decentralized finance (defi) protocol since inception. Most of the locked value consists of 75,244 ether and almost $26 million in USDC stablecoin.

Coinbase’s Base Expands to a $175 Million TVL

Coinbase’s Base, as an early publicly-listed company to introduce its own L2 blockchain, has experienced steady growth. On July 30, 2023, the daily active users of Base were 55,417, but they rocketed to an all-time peak of 136,047 merely 11 days after. This exceeded L2 Optimism’s 114,736 daily active users on that same day.

In contrast to Coinbase’s Base protocol, Optimism’s usage saw a boost from the Worldcoin launch, as its native asset WLD is hosted on the L2 network. As of 9:00 a.m. (ET) on Friday, August 11, 2023, the total value locked (TVL) in Base was roughly $175,915,994, according to data from Dune Analytics.

Dune’s statistics indicate that the majority of Base’s TVL is formed of ETH and USDC, with 75,244 ETH and 26,075,940 USDC secured in Coinbase’s layer. About 6,428,425 DAI and 2,183 CBETH — Coinbase’s liquid staking Ethereum derivative token — are also part of the circulation on Base.

Defillama.com’s data discloses that Base’s TVL would have ranked below Cardano’s on August 11, if measured. At that time, Cardano’s TVL was $179.17 million, distributed across 24 defi protocols with 36,160 users. Though outpacing Bitcoin’s locked value of $171.73 million, Base’s TVL still falls short when compared to Arbitrum and Optimism, whose TVLs stand at $849.42 million and $1.928 billion, respectively.

On July 30, Base’s daily transactions topped at 607,699, and on August 10, they accomplished 579,752 transfers. Coinbase’s defi solutions have emerged as significant components in the ecosystem, with the company’s liquid staking derivative protocol standing as the second-largest holder of locked ether, following Lido Finance.

What are your thoughts on the progress Base has made since its launch? Please feel free to share your insights and perspectives on this matter in the comments section below.

Frequently Asked Questions (FAQs) about Ethereum L2 protocol

What is Base and its significance in Ethereum’s L2 ecosystem?

Base is an Ethereum layer two (L2) scaling solution supported by Coinbase. It has attracted over $175 million in total value locked (TVL) since its inception, making it a notable player in the decentralized finance (defi) space.

How does Base’s TVL compare to other L2 solutions?

As of August 11, 2023, Base’s TVL was approximately $175 million, mainly consisting of 75,244 ETH and $26 million USDC. While Base’s TVL is substantial, it’s important to note that it lags behind Arbitrum and Optimism, which have TVLs of $849.42 million and $1.928 billion, respectively.

How has Base’s user base evolved over time?

Base’s growth has been remarkable. Daily active users started at 55,417 on July 30, 2023, and quickly surged to an all-time high of 136,047 just 11 days later. This growth outpaced L2 Optimism’s user count on the same day.

What is the significance of Base’s native asset and its role in usage?

Unlike some other L2 protocols, Base’s native asset does not significantly impact its usage. Optimism, for example, benefited from the launch of the Worldcoin native asset. Base’s usage growth is primarily driven by the protocol’s features and its support from Coinbase.

How does Base’s transaction count compare to its peers?

Base’s daily transaction count peaked at 607,699 on July 30 and reached 579,752 transfers on August 10. These figures demonstrate the protocol’s active usage and engagement within the Ethereum ecosystem.

What is Coinbase’s role in Base’s growth?

Coinbase’s support and backing have contributed to Base’s rapid growth. Being an early publicly-listed firm to introduce its own L2 blockchain, Coinbase has helped propel Base into becoming a prominent player in Ethereum’s L2 defi space.

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3 comments

DeFiDabbler August 12, 2023 - 4:37 am

base’s growin’ fast, user numbers climbin’ higher, Coinbase’s backin’ givin’ it turbo charge, defi space heatin’ up!

Reply
CryptoExplorerX August 12, 2023 - 5:24 am

L2 game’s intense, Base holdin’ its ground, but Optimism’s pullin’ WLD card, defi world’s real battlefield, innit?

Reply
TechNerd_007 August 12, 2023 - 8:06 am

base & coinbase makin’ waves in Ethereum L2, TVL at $175M’s no small feat, wonder how it stacks ‘gainst other L2s?

Reply

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