The total value locked (TVL) on Ethereum's layer-2 network Base has surpassed $8 billion, marking a significant milestone in the network's growth. This achievement comes just days after Base overtook Optimism’s OP Mainnet, establishing itself as a dominant player in the Ethereum scaling solutions market.
Rapid Growth and Market Position
According to L2Beat, Base's TVL reached $8.05 billion on June 10. This includes $2.14 billion of canonically bridged value—assets locked on Ethereum represented on Base—and $5.92 billion in natively minted assets. Base's rapid ascent in the rankings is noteworthy, considering it launched only in August 2023. It has since become the second-largest Ethereum scaler by TVL, trailing only Arbitrum One, which holds $18.27 billion.
Base notched the $1 billion TVL mark on February 27, just seven months after its launch. Over the last 104 days, Base has seen a dramatic increase in TVL, underscoring its growing popularity and adoption within the Ethereum ecosystem.
Transaction Dominance and Profitability
Base has also led in transactions per second (TPS) among Ethereum layer-2 solutions, recording 30.36 TPS over the past month, surpassing Arbitrum One's 23.52 TPS. In the last 30 days alone, Base processed 64.86 million transactions, highlighting its efficiency and capacity.
Financially, Base has been the most profitable Ethereum layer-2 network over the past three months. In March, it recorded a peak profit of $16.9 million. Although on-chain profits dipped to $6.98 million in May, Base still outperformed OP Mainnet, which posted $1.57 million in profits for the same period.
Challenges and Security Concerns
Despite its success, Base has faced challenges, particularly with security. The network saw an 18-fold increase in funds stolen from phishing scams from January to March 2024, partly due to its popularity with memecoins. This underscores the need for enhanced security measures as the network continues to grow.
Future Outlook
Analysts at asset manager VanEck predict that Ethereum layer-2 scaling networks could collectively achieve a market cap of $1 trillion by 2023. Base's rapid growth and strong performance position it well to capitalize on this potential, making it a critical component of the Ethereum scaling landscape.
Conclusion
Base's impressive growth and significant TVL underscore its role as a major player in the Ethereum scaling ecosystem. As it continues to lead in transactions and profitability, Base is set to drive further innovation and adoption in the DeFi space.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.