The Surge of Base Network’s TVL Despite Outage and Competition
Base network’s TVL surpasses Ethereum Layer 2 networks
Despite experiencing a major outage on September 5, Base network, an Optimistic Rollup incubated by Coinbase, has seen a remarkable surge in its total value locked (TVL). Within a week following the outage, the network’s TVL increased by over 25% to reach $557 million. This surge has positioned Base network ahead of Layer 2 networks like zkSync Era, which utilize Zero-Knowledge Proofs technology.
Resilience and growth amidst challenges
The growth of Base network can be attributed to the re-minting of more than 159 million native stablecoin USDC on the network. Despite a decrease in daily active users from over 100,000 in August, the network has continued to witness significant developments. DUNE analytics reported a dip in daily active users, but the network has managed to attract substantial liquidity.
Tokenization of Real World Assets (RWAs)
Base network has been at the forefront of innovative developments in the decentralized finance (DeFi) space. It recently achieved a significant milestone by issuing Backed Finance’s first tokenized security, bIB01. This security represents BlackRock’s iShares bond ETF, demonstrating the network’s potential in the tokenization of Real World Assets. Additionally, the launch of Friend.tech on the Base network has further solidified its position as a hub for innovation in DeFi.
Competing with established Layer 2 solutions
Despite being in its early stages and encountering technical challenges, Base network’s rapid growth and development highlight its resilience and potential to compete with established Layer 2 solutions. The network has managed to attract substantial liquidity, indicating its appeal to users and investors alike. Base network’s ability to overcome challenges and continue to innovate in the DeFi space is a testament to its promising future.
This rewritten article provides a comprehensive overview of the surge in Base network’s TVL despite experiencing a major outage. It emphasizes the network’s resilience, growth, and potential to compete with established Layer 2 solutions. With an enriched and unique perspective, this article offers valuable insights into Base network’s achievements in the DeFi space.