Coinbase L2 Base Network Surpasses Defunct FTX in TVL

Coinbase’s layer-2 network, Base, has marked a significant milestone, surpassing Solana (SOL) in Total Value Locked (TVL), with a remarkable TVL of $397.32 million since its inception in August. In contrast, Solana’s TVL stands at $358.96 million, according to data from DefiLlama.

Rapid Growth and Decline

Base has witnessed a substantial 97.21% increase in TVL over the past month, overshadowing Solana, which experienced a 9.64% decline in its TVL during the same period. The majority of Base’s TVL is attributed to decentralized exchange Aerodrome Finance and decentralized social media app Friend.tech, with TVLs of $97.83 million and $36.53 million, respectively.

Spotlight on Aerodrome Finance and Friend.tech

Aerodrome Finance, introduced on August 28, enables users to deposit liquidity to earn AERO tokens and has seen its TVL soar, with a significant $150 million influx on August 31. However, the initial enthusiasm waned, resulting in a 51% decrease in the project’s TVL.

Friend.tech, unveiled on August 11, allows users to tokenize their social networks by trading “Keys.” Despite initial hurdles, the platform saw a 540% surge in TVL in September, driven by a spike in daily trading volume starting September 9.

Achievements and Milestones

Beyond these projects, Base’s TVL is significantly bolstered by contributions from multinetwork decentralized finance platforms like Compound, Curve, and Uniswap. Base also achieved a record 1.88 million daily transactions on September 14, surpassing competitors like Optimism and Arbitrum.

Coinbase’s Advocacy for Regulatory Clarity

Coinbase is actively advocating for clearer crypto regulations in the US, launching campaigns and establishing the Stand with Crypto Alliance to support crypto-friendly legislation. The company is challenging the SEC’s stance, pushing for a well-defined regulatory framework for digital assets, despite facing legal scrutiny and accusations of operating as an unregistered securities exchange.

Conclusion

Base’s ascent in TVL, surpassing Solana, underscores the evolution of decentralized finance platforms. The  growth of projects like Aerodrome Finance and Friend.tech within Base highlights the potential within the layer-2 network. Meanwhile, Coinbase continues its advocacy for regulatory clarity in the crypto sector, emphasizing the need for a legislative environment for the cryptocurrency industry. The developments within Base and Coinbase’s ongoing initiatives reflect the multifaceted advancements in the crypto landscape.