The Base Locked Total Value (TVL), an Ethereum Layer 2 (L2) network developed by Coinbase, has more than doubled over the past year.
Base’s TVL has risen from $3.9 billion to $8.4 billion over the past 12 months, according to data from the Token Terminal. The surge has made the base the main L2 blockchain by the ecosystem TVL. This refers to the total US dollar value of assets deposited in applications across the blockchain. In the context, the Ethereum ecosystem currently holds $213.9 billion on TVL.
According to Token Terminal data, in the past month alone, Base’s TVL has risen by almost 16%. Arbitrum One currently holds the second highest TVL in the L2 network, followed by the third Polygon POS.
Base Ecosystem TVL
Base’s jumping in TVL shows that more users trust and use the network. According to experts, one of the key drivers behind this is that Binance.us supports ETH and USDC at the base. The integration, announced earlier this year, makes it easier for people to use the network without moving assets through Ethereum’s mainnet.
Token Terminal notes that the top six protocols in the base network account for 93% of the ecosystem TVL. These protocols include Morpho, Aerodrome, Uniswap, and more. Most of the top applications based on the base are backed by Coinbase (yen) or Coinbase ventures (such as Morpho, Aerodrome, Uniswap, Liquid, Euler), the Token Terminal Report states.
Stablecoins Boost TVL
Furthermore, approximately 45% of total ecosystem TVL comes from Stablecoin-collected sediments located primarily in USDC and EURC in Circle. According to Defillama, USDC is currently the second largest Stablecoin, with nearly $61 billion by market capitalization.
The Stablecoin market has experienced a massive surge in recent years as institutional profits increase and regulations become easier. The sector’s market capitalization is approximately $245 billion, an increase of nearly $3 billion over the past week alone. Tether’s USDT leads by a market capitalization of $153 billion.
