Base, layer-2 of Ethereum managed by the well-known cryptocurrency exchange Coinbase, has doubled its TVL in the last month by adding more than 1 billion dollars in the midst of the crypto market euphoria.
The main reason for the sharp increase in the metric is the investment fever in memecoins, with the focus recently shifting from Solana to Base attracting significant retail capital.
All the details below.
Ethereum layer-2: the Base network adds 1.37 billion dollars of TVL in just one month
Recently, the layer-2 of Ethereum Base has recorded an unusual cryptographic activity, with the metric of “Total Value Locked (TVL)” skyrocketing along with the general crypto market euphoria.
Within just one month, the sum of capital locked within the ownership chain of the Coinbase exchange has more than doubled, going from 1 billion dollars on February 27 to the current 2.27 billion dollars.
Other on-chain indicators have also reached important milestones, such as the number of transactions per second that the chain can process exceeding 16 txn and network fees reduced by 99% after the implementation of the ‘Dencun update on the Ethereum blockchain.
It is worth noting that after Dencun, more precisely on March 16, Base recorded the record of 2 million transactions hosted by the network in a single day.
Entered mainnet just in August of last year, the layer-2 Base is growing significantly day by day, qualifying as a top infrastructure in the market.
After the last TVL rally, increased by 48% in seven days, Base is very close to surpassing the layer-2 Blast, only 300 million dollars away, officially entering the podium of the top scalability solutions with only the giants Arbitrum and Optimism ahead.
The cryptos that have contributed the most to the increase in TVL are USDC, the native token most minted on the chain with 600 million units, and ether, the largest currency by bridged value with a total of 800 million dollars.
Several crypto experts like Andrew Forte, director of business development at the blockchain solutions company Dappd, have expressed their optimism about Coinbase’s layer-2 as its parent company is promising significant improvements to its infrastructure.
In detail on the plate there would be a plan to build a portfolio of smart contracts that can offer the 100 million Coinbase users the opportunity to trade on a basis without the need to keep private keys and passwords typical of non-custodial wallets.
Potentially a game changer for the chain and for the entire cryptographic industry.
Ethereum: The memecoin mania spills over onto the Base blockchain and attracts crypto investments in DeFi
The trend of crypto memecoins has contributed significantly to the substantial increase in TVL Base, recently shifting from Solana to embrace Coinbase’s layer-2.
Several market analysts agree that the memecoin craze has attracted significant amounts of capital into the DeFi sector, leading many users to speculate on the new coins created directly by the community.
As highlighted by the crypto influencer “Xremlin”, the focus of meme-based coins that brought wealth to early adopters is now shifting to Base, offering unique speculation opportunities.
Among the most important cryptos in this niche sector we find Degen(DEGEN) and Base God (TYBG), with market capitalization of 143.4 million dollars and 65.9 million dollars respectively.
Following Normie (NORMIE), Briun Armstrung (BRIUN) and Brett (BRETT) complete the list of the best layer-2 memecoins, with new entries ready to make their debut in the coming days encouraged by the FOMO of the market.
Despite the recent growth phase that has allowed TVL to grow exponentially, it is worth noting that the level of this category is still significantly lower compared to the same counterpart operating on Solana and Ethereum, where cryptos like BOME, SLERF, SHIB and DOGE dominate undisputedly with billion-dollar market capitalizations.
However, if the trend of memes on Base were to continue at the same current pace, let’s expect the same result also for Coinbase’s layer-2 coins.
In conclusion, while highlighting a very attractive narrative for speculations in DeFi, we remind you that investments in this type of cryptocurrencies are very risky and could lead to the loss of capital.
It is essential in this context to know how to manage your risk management well and only allocate what you are willing to lose in this sector.