11:05 ▪
4
Minimum read time up to ▪
Coinbase and Ethereum, two pillars of the cryptocurrency world, have taken a significant step forward with their layer 2 network, Base. This optimistic rollup developed by Coinbase surpassed Arbitrum in terms of total value locked (TVL), reaching $2.49 billion. This number places Base in the top five global blockchains and positions it to reshape the landscape of Ethereum scalability solutions. But what does this mean for the future of cryptocurrencies, and what are the prospects for such upheaval in the Layer 2 ecosystem?
Base redefines the Layer 2 solution landscape
Base quickly secured a leading position and rose to the top of Ethereum's Layer 2 solutions, marking its rise by outperforming Arbitrum in TVL.
The network is designed to process transactions outside of the main Ethereum blockchain while periodically returning data to the blockchain and relies on optimistic rollup technology.
This allows for lower transaction fees and increased speed, which appeals to both users and DeFi protocols.
To date, approximately 366 protocols have been deployed on Base, including decentralized exchange Aerodrome, which contributes $1.3 billion to TVL.
With $2.49 billion locked in, Base is not only the largest Ethereum rollup. It also ranks as one of the most powerful blockchains, next to giants like Tron and BNB Chain.
This rapid progress is the result of a thoughtful strategy by Coinbase, which sees Base as a way to democratize access to fast and economical transactions on Ethereum.
Eden Au, research director at The Block, emphasizes that this advancement for Base reflects Coinbase’s commitment to positioning Ethereum as a benchmarking platform for layer 2 solutions. Ultimately, Base could become the centerpiece of Ethereum's scalability vision.
Coinbase's strategic planning doesn't end there. To address the increase in activity, Base recently increased its gas target to 13 Mgas/s, an adjustment aimed at absorbing increased trading volumes.
By relying on its progressive pace of evolution, Base is preparing to manage up to 1 Ggas/s of capacity that has the potential to revolutionize the entire Ethereum ecosystem.
Shock that shakes the world of cryptocurrencies
Beyond the numbers, Base's rise has broader implications. Base exceeds all other Layer 1 rollups in terms of user activity, reaching 1.5 million daily active addresses.
This not only shows the growing popularity of this rollup, but also the real demand for solutions that optimize Ethereum's functionality.
Base's success also reflects a paradigm shift in how users perceive Layer 2 solutions. Layer 2 solutions are no longer mere extensions, but essential players in the cryptocurrency ecosystem.
However, everything isn't perfect yet. Despite its success, Base is still in its maturation stage.
At this stage, it lacks some key features to ensure full decentralization. In the absence of anti-fraud systems, users must trust developers to ensure transaction transparency.
However, Coinbase has already anticipated these needs and plans to integrate proof of fraud in the next stage of development, which should strengthen user security and trust in the long run.
In parallel, Coinbase continues to assert its position by strengthening Base's integration with the main Ethereum network. This interaction between Rollup and Ethereum ensures interoperability that opens new perspectives.
By offering a solution that combines the security of Ethereum with the scalability of Base, Coinbase is positioned to attract developers who want to leverage the efficiency of DeFi protocols, dApps, and layer 2 solutions.
Get the most out of your Cointribune experience with the Read to Earn program! Earn points every time you read an article and get access to exclusive benefits. Sign up now and get rewards.
The appeal of Bitcoin in 2017, creating important documents. This essay aims to revitalize Avance, which is the forefront of transactions and the center of virtual currency. En tant que redacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
