See More

Coinbase’s L2 Base Surpasses Optimism, Achieves a New Milestone with $8 Billion TVL

2 mins
Translated Lynn Wang
Join our Trading Community on Telegram

In Brief

  • Coinbase L2 Base recorded new milestones by achieving $8 billion TVL, surpassing Optimism.
  • Base leads the Ethereum L2 sector with an average of 30.36 transactions per second last month.
  • Despite its rapid growth and popularity, Base faces challenges, particularly security-related ones.
  • promo

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

Base TVL Growth.
Base TVL Growth. Source: L2Beat

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.

On-chain Profits Among Rollup Solutions.
On-chain Profits Among Rollup Solutions. Source: Dune

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.

Top crypto projects in the US | June 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Lynn-Wang.png
Lynn Wang
Lynn Wang is a seasoned journalist and content creator with over eight years of experience in digital marketing and cryptocurrency journalism. Her expertise lies in SEO strategy, blockchain technology, and Web3, where she has consistently delivered impactful content initiatives and engaged audiences effectively. Since January 2022, Lynn has been at the forefront of content and community efforts for BeInCrypto Indonesia. Under her leadership, the platform has witnessed remarkable growth,...
READ FULL BIO
Sponsored
Sponsored