Base Network's Rise in the DeFi Landscape

Base Network's Growth

Coinbase's layer-2 network, Base, has marked substantial progress since its mainnet launch six weeks ago. Recently, the total value locked (TVL) in Base reached an impressive $370.29 million, overtaking Solana's $310.43 million. This growth persists despite a temporary service disruption in early September.

Resilience Against Market Trends

Base's expansion contrasts with the broader crypto market's downturn, where many top DeFi protocols have seen declines. While Solana's TVL dropped by 9.64% last month, Base surged to $397.32 million. Alongside Tron, Base is one of the few networks experiencing positive growth in this challenging environment.

Protocols Driving Volume

The substantial volume on Base is largely driven by its leading protocols, Aerodrome and Friend.Tech, contributing around $134.48 million to the TVL. Aerodrome Finance, which launched on August 28, accumulated $150 million in a single day by August 31. Friend.Tech also experienced renewed user interest in September after a slow August.

Comparing with Ethereum

Despite Base's impressive figures, it remains small compared to Ethereum, which holds a TVL of $21.18 billion, representing 54.64% of the total value across all chains. In contrast, Base accounts for just 0.96% of the TVL globally.

Security and Caution

Base does not have a native token, prompting Coinbase to caution users about potential scams involving fake Base tokens. As DeFi's popularity grows, offering decentralized financial services akin to traditional banking, it's crucial for users to remain vigilant against fraudulent schemes.

By understanding these dynamics, stakeholders can better navigate the evolving DeFi landscape and the role of emerging networks like Base.