Base, the Layer 2 Ethereum network developed by Coinbase, has achieved the $2 billion milestone in total value locked (TVL), making it the second-largest optimistic rollup by deposits, trailing only Arbitrum.
DeFiLlama data indicates that Base’s TVL has increased by 370% year-to-date, from approximately $430 million at the beginning of the year to $2.08 billion.
Base, initiated in August 2023, functions as an optimistic rollup that processes transactions off the Ethereum mainnet and only intermittently posts data on-chain.
This method optimizes Ethereum’s transaction throughput and efficacy by decreasing its workload.
The Aerodrome is the primary factor driving the growth of Base
The decentralized exchange Aerodrome has been the primary factor driving the growth in Base’s TVL, accounting for over $1 billion of the total deposits.
Additionally, Uniswap is a significant contributor, contributing approximately $220 million.
Base has outperformed Arbitrum regarding user activity, despite Arbitrum’s leadership in TVL among optimistic rollups.
Data from The Block indicates that it has achieved the highest position in the optimistic rollup sector, as evidenced by metrics such as active addresses and daily transactions.
According to the report, DeFi is currently experiencing a resurgence, as critical indicators such as active loans and TVL demonstrate substantial growth from their 2023 lows.
One of the indicators is that active loans have increased to approximately $13.3 billion, a level that has yet to be observed since early 2022.
DeFi lending enables investors to lend their crypto holdings to borrowers in exchange for interest, is an essential metric for evaluating DeFi participation and the market’s overall health.
In 2021, the apex of DeFi active loans was $22.2 billion, coinciding with Bitcoin and Ethereum approaching $69,000 and $4,800 during the crypto bull run.
In March 2022, this figure plummeted to approximately $10 billion, further declining to $3.1 billion in January 2023.
The sector has experienced a substantial recovery since its low point last year, with active loans returning to $13.3 billion.
TVL in DeFi also experienced a significant decline last year, with an 80% decrease from its apex of $180 billion in November 2021 to approximately $37 billion by October 2023.
Nevertheless, the industry has since made a remarkable recovery of about 160%, with TVL currently valued at about $96.5 billion, according to DefiLlama.
Coinbase Asks Court to Pressure SEC Over Crypto Regulations
On Monday, Coinbase implored a federal appeals court in Philadelphia to pressure the U.S. Securities and Exchange Commission (SEC) to establish new crypto regulations.
Coinbase appealed to the court, contending that the Securities and Exchange Commission had rendered it impossible to operate and adhere to regulations.
Eugene Scalia, a counsel for Coinbase, claimed that the SEC had acted ” arbitrarily and capriciously. “
“The regulator has not provided Coinbase with a clear understanding of registering and complying with U.S. laws,” Scalia continued.
Last year, Coinbase filed a lawsuit against the Securities and Exchange Commission (SEC) to establish regulations that specify the criteria for determining whether cryptocurrency is classified as a security.
Nevertheless, the SEC refuted its assertions in December, stating that the existing crypto regulations are “unworkable.”
The exchange achieved a partial victory against the SEC earlier this month, which could grant it access to critical documents concerning the agency’s classification of tokens as securities.
