Coinbase’s layer-2 (L2) Base has reached a new milestone. In just a few days, the platform’s total value locked (TVL) rose to over $8 billion, surpassing one of its major competitors—Optimism.
This achievement presents Base’s rapid ascent in the competition among Ethereum-based L2 solutions. It also solidifies its position as a key player in the blockchain ecosystem.
Base Leads in Transactions and Profits Among Ethereum L2s
According to L2Beat data, Base reached $8 billion TVL as of June 10. This includes $2.14 billion in bridged value and $5.92 billion in native tokens minted on the blockchain. The recent achievement puts Base just behind Arbitrum One, which has a TVL of $18.27 billion.
Read more: A Beginner’s Guide to Layer-2 Scaling Solutions
Since its launch in August last year, Base has seen impressive growth. By February 27, the platform reached the $1 billion mark in TVL, which has increased eightfold in the last 104 days.
With an average of 30.36 transactions per second (tps) over the last month, Base leads all Ethereum L2 solutions. For comparison, Arbitrum One averages 23.52 tps. In total, Base processed 64.86 million transactions in the previous 30 days.
Base also leads in profits. Over the past three months, the platform generated the highest on-chain profits, according to Dune Analytics, including a record $16.9 million in March. Although profits fell 58.6% to $6.98 million in May, Base remained well ahead of Optimism, which only took in $1.57 million over the same period.
However, Base’s rapid growth and popularity also bring challenges. During the meme coin boom in the first months of 2024, the network saw an 18-fold increase in funds stolen through phishing scams. This challenge aligns with a recent comment from Ryan Lee, Chief Analyst at Bitget, regarding the security and vulnerabilities of smart contacts.
“With the development of the encryption field, more complex smart contracts will be developed to meet the increasing number of user requests. The vulnerability risk associated with highly complex code is also gradually increasing, which can lead to the loss of funds,” Lee told BeInCrypto.
Read more: Layer 1 vs. Layer 2: What Is the Difference?
Additionally, Lee thinks that regulatory challenges constantly evolve due to Ethereum’s continuous technological advancement and the widespread adoption of Layer-2 solutions.
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