Coinbase (NASDAQ:COIN)'s layer-2 network, Base, has experienced significant growth since its mainnet went live approximately six weeks ago. As of Monday, the total value locked (TVL) on Base reached $370.29 million, surpassing Solana, which holds a TVL of $310.43 million. This surge in TVL comes despite a service interruption experienced by Base in early September.
Interestingly, Base's growth defies the overall downward trend seen in the crypto market. While Solana's TVL decreased by 9.64% over the past month, Base's TVL surged to $397.32 million. In contrast to other top ten DeFi protocols that are in the red, only Base and Tron have seen positive growth.
A significant portion of the volume on Base comes from its two largest protocols: Aerodrome and Friend.Tech, which account for approximately $134.48 million, roughly a third of all TVL on Base. Aerodrome Finance made its debut on August 28 and despite a subdued response initially, it amassed $150 million in just a single day on August 31. Friend.Tech, launched on August 11, saw a decline in user interest in August but experienced a resurgence in September.
Despite these impressive numbers, they are dwarfed when compared to Ethereum, which boasts a TVL of $21.18 billion and accounts for 54.64% of the total value locked across all chains. In comparison, Base accounts for just 0.96% of TVL across all chains.
It should be noted that while Base does not have a native token, Coinbase issues warnings about potential scammers offering fake Base tokens. As of Monday, according to CoinMarketCap, Solana's SOL was trading at $19.48, reflecting a 5.2% decrease over the last 30 days.
Decentralized Finance, or DeFi, has seen increasing popularity recently. It allows users to access peer-to-peer financial products via blockchain, similar to services offered through traditional banking. Users can trade, swap, borrow, lend and much more, all without a bank acting as an intermediary.
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