An unexpected contender has emerged in the world of decentralized finance (DeFi). The layer-2 network from Coinbase, known as Base, has eclipsed the total value locked (TVL) of renowned blockchain platform, Solana. Base records a TVL of $397.32 million since its revelation in August, overshadowing Solana’s $358.96 million according to DefiLlama data.
But what drivess this whopping 97.21% surge in Base’s TVL? It seems to be multi-pronged. The majority of Base’s TVL stem from decentralized exchange Aerodrome Finance and decentralized social media app Friend.tech, holding the top two spots respectively. Aerodrome Finance, having made its entrance on August 28th, enables users to provide liquidity and be rewarded with its native AERO tokens among other features. The TVL soared to a staggering $150 million on August 31, but has since ebbed around 51% as the initial flurry of enthusiasm subsided.
In the second place, Friend.tech, a platform that facilitates tokenization of social networks, underwent a dramatic TVL increase by 540% in September, despite some late-August headwinds. The inclusion of multinational DeFi platforms like Compound, Curve, and Uniswap also cascades into Base’s TVL contribution.
Base’s milestone achievement this month can’t be ignored as well. It boasted 1.88 million daily transactions on September 14, outdoing rival chains such as Optimism and Arbitrum. Although daily transactions have reduced to about 908,000 currently, Base’s all-time high stays unbeaten.
Coinbase, in the meantime, is turning its attention to drive legislation changes in the crypto realm. The platform unveiled a new media campaign earlier this week, spurring crypto-savvy individuals to communicate their concerns to congressional representatives regarding the necessity for crypto regulation clarity. Furthermore, Coinbase, in mid-August, broke the news regarding formation of the Stand with Crypto Alliance, a crypto advocacy movement striving to foster a congenial regulatory environment for digital assets.
Yet, despite this committed push for unambiguous regulations, Coinbase isn’t escaping the watchful eyes of authorities. The Securities and Exchange Commission (SEC) has lodged a lawsuit against the exchange as recent as June, alleging that the platform functions as an unregistered securities exchange, broker, and clearing agency.
The tug-of-war between regulatory clarity and legal scrutiny continues to punctuate the crypto world’s narrative. Will Base’s remarkable surge in TVL bear the roost or will it serve just as another transient sensation? Only time will tell.