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The Ethereum-based Layer 2 network, also known as the Base network, of the US-based cryptocurrency exchange Coinbase has continued its upward trend with a strong performance last week. With this momentum, the total value locked (TVL) in the Base network increased by 25.23% to reach $558 million.
zkSync Era Left Behind
According to data from L2Beat, the TVL of the Base network increased by 25.23% last week, reaching $558 million. With this increase, the Base network surpassed zkSync Era, which had a TVL of $435 million. The main driving force behind this increase was the issuance of $USDC on the network on October 4, resulting in a significant increase of 470.55% to reach a total of 159 million $USDC.
Last month, Circle, the issuer of the leading stablecoin $USDC, announced that it would start issuing its stablecoin on the Base network. This issuance announcement was a strategic move by Circle to enhance the functionality of $USDC by bringing the stablecoin as a native asset to other blockchains. This approach was significant as it eliminated the need for bridging through Ethereum-based tokens for Base.
Base Gains Strength in the DeFi Market
Base is an Ethereum Layer 2 solution jointly developed by the cryptocurrency exchange Coinbase and Optimism. The network’s main goal is to provide a secure, economically efficient, and user-friendly environment for the creation of applications on the chain. It is fully compatible with Coinbase Wallet and all Ethereum Virtual Machine (EVM) wallets.
Base network is emerging as a rapidly growing competitor in the DeFi space. Shortly after its launch in early August, leading players in the market started testing the platform. Beverage giant Coca-Cola introduced its ‘Masterpiece’ NFT collection on the Base platform shortly after.
Last month, Coinbase’s Chief Legal Officer, Paul Grewal, also mentioned the possibility of launching a cryptocurrency on the Base platform. Grewal’s mention of the possibility of a cryptocurrency launch could significantly enhance the benefits of the Base network in the DeFi market.