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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.