Coinbase‘s Ethereum Layer 2 platform, Base, has witnessed a remarkable surge in total value locked, nearly reaching the $1 billion mark. The boost in deposited funds has been predominantly driven by the decentralized cryptocurrency exchange Aerodrome, accounting for roughly half of Base’s overall TVL.
Decentralized Exchange Aerodrome Leads with Strong Growth
Aerodrome’s contribution stands at $424 million, making it the main source of Base’s TVL, which totals approximately $970 million. This growth is fueled by user engagement and the appreciating value of Aerodrome’s native token, Aero, which has escalated from $125 million to over $420 million in TVL since early February.
Launching as a clone on the Base network in September 2023 by the Velodrome Finance team, Aerodrome aims to enhance on-chain liquidity and facilitate network swaps. It employs decentralized finance incentives and governance through voting, mirroring its approach on the OP Mainnet.
Ethereum’s Dencun Update Spurs Layer 2 Activity
The launch of Base’s mainnet in August 2023 and its subsequent growth post Ethereum’s Dencun upgrade have catapulted it above other Layer 2 networks in TVL rankings. This update resulted in a spike in daily users and transactions, setting new records for the platform.
The swelling of TVL and user traffic on Base underscores the escalating demand for Layer 2 solutions that provide enhanced scalability and reduced transactional costs within the Ethereum ecosystem. Backed by Coinbase and the triumph of projects like Aerodrome, Base is cementing its role as a formidable entity in the Layer 2 arena, delivering effective and economical decentralized exchange offerings to its users.
