Despite the regulatory uncertainties that Coinbase is currently navigating, its layer 2 blockchain, Base, is experiencing significant growth. Base has now become the ninth-largest blockchain in terms of total value locked [TVL]. According to data from Defillama, Base’s TVL stands at $370.29 million. It has managed to surpass Solana, which has a TVL of $310.43 million.
As seen in the chart, Solana’s performance has remained relatively stagnant, while Base has experienced a notable expansion in its TVL. Over a period of 41 days, the growth of the layer 2 network has been quite remarkable. Back in August, the network had a TVL of $175 million; this number has surged by 111% to reach $370 million.
Base also outperformed the Ethereum network. In the month following its launch, Base recorded 1.84 million daily transactions on Sept. 14, whereas Ethereum handled 1.28 million transactions on the same day. Subsequently, Base has consistently outperformed Ethereum’s transaction volume.
Nevertheless, Base’s daily transactions fell below the 1 million mark, letting Ethereum regain its leading position. It should be noted that the increase in activity on Base is mainly attributed to the increased use of friend.tech, a decentralized social media network.
Also Read: Coinbase’s L2 Base Logs 1.4 Million Transactions Post Recent Outage
Will Base Chain issue native tokens?
After its launch, Coinbase’s Base faced criticism for harboring more than 500 fraudulent tokens. This caused scammers to make $2 million in profits. However, the network also accommodates numerous legitimate tokens. In light of these developments, the community has been eagerly anticipating the network’s eventual release of its native token.
In a recent interview, Paul Grewal, Coinbase’s Chief Legal Officer, mentioned that the prospect of Base Chain issuing tokens hasn’t been entirely dismissed. However, they are not currently prioritizing the economic and tokenization aspects of the protocol. This decision is driven by the crucial importance of adhering to clear regulations.
Also Read: 7 Chainlink Integrations Take Place on Ethereum, Base, Polygon