Mr Viral
Coinbase’s Layer 2 network on the Ethereum blockchain Base has surpassed $2 billion in total value locked (TVL) for the first time amidst hiking memecoin demand.
This growth represents a 370% year-to-date (YTD) increase, with Aerodrome, a decentralized exchange, being the key contributor. The growing memecoin speculation remains a potential drive for users’ activity on Base.
This move marks a milestone feat for Base, which also emerged as the second-largest optimistic rollup in terms of deposit, closely after Arbitrum.
Base Hits A Milestone of Over $2 Billion In TVL Driven By Aerodrome
According to data from DeFiLlama, the layer two network Base raised its TVL to over $2.08 billion for the first time. The trend of flows showed that Base reached the $1 billion TVL on February 27, about 226 days after its debut in August 2023.
Base’s TVL stood at almost $430 million in January. So, the current value represents a 370% year-to-date growth.
Notably, the decentralized exchange Aerodrome is the major contributor to Base’s TVL growth. The DEX accounts for over $1 billion of the network’s total deposits.
Uniswap follows closely, accounting for about $220 million in deposits. With its increasing adoption rate, Base ranks as the second-largest optimistic rollup in deposits. It closely follows Arbitrum, which boasts over $2.5 billion in TVL.
Although Arbitrum leads in TVL, Base has shown dominance in other metrics. Based on user activity, active addresses, and daily transactions, Base is the top-performing optimistic rollup.
The overall metrics indicate that Base keeps recording increasing adoption within the industry.
Memecoin Assets Potential Drive For Base Increased Adoption
Some analysts believe that the growing memecoin speculation could be a potential drive for Base’s significant feats. The network has recorded a spike in its adoption rate with increasing users’ activity. The overall trend could suggest that Base is attracting participants from Solana.
Solana has proven its stance with a rise in memecoin trades within the past few months. It boasts of several memecoin projects with massive engagement as the frenzy on memecoin continued.
For instance, Dogwifhat (WIF) is a top-trending Solana-based memecoin that amassed a market cap of over $2.3 billion.
Other notable Solana-based memecoins are Book of Meme (BOME) and Slerf (SLERF), with market caps of $1.4 billion and $524 million, respectively.
However, some crypto community members think many are shifting to Base due to its attractive memecoin projects. Some prominent memecoin projects on Base include Degen (DEGEN), Brett (BRETT), Base God (TYBG), and others, which boast growing communities.
Though these projects still have smaller market caps than some Solana-based memecoins, they have the potential for explosive growth.
Coinbase, the crypto exchange behind Base, has made significant innovative moves that could boost the network’s adoption. Recently, the exchange developed Smart Wallets to enable registered users to trade on Base without private keys or seed phrases.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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