Base Dethrones Arbitrum to Become Largest Ethereum Rollup by TVL

Base, the layer 2 (L2) Ethereum network developed by Coinbase, has emerged as the largest rollup by total value locked (TVL), according to data from DeFiLlama.

Base’s TVL stands at approximately $2.46 billion, spread across 366 protocols, slightly surpassing Arbitrum’s $2.39 billion. A large part of Base’s TVL comes from Aerodrome, a decentralized exchange on the network, which has over $1.3 billion in assets locked.

Base Experiences Growth in Network Activities

Base network has also secured a spot among the top five blockchain networks by TVL, trailing behind major Layer 1 chains like Ethereum, Tron, Solana, and BNB Chain. It operates as an optimistic rollup using the OP Stack, which processes transactions off the Ethereum mainnet and periodically commits data back to it.

In recent months, Base has experienced a substantial rise in transaction volume, managing between 40% and 60% of all transactions among the three main layer 2 networks. Additionally, blockchain data shows that Base now has nearly 40% more daily active addresses than the combined total of Arbitrum and Optimism.

CoinTab reported that Base’s daily active addresses have surpassed 2 million, surpassing other layer 2 networks. The network’s growing popularity can be attributed to several factors, including airdrops, increased usage of cbBTC (Coinbase’s wrapped version of Bitcoin on Base), and the rise of Basenames, which allow users to create unique blockchain identities.

Enhancing the Network’s Capacity

To accommodate rising user activity, Base raised its block gas target from 10 to 13 Mgas/s this month. The adjustment is part of a broader plan to gradually enhance the network’s capacity, allowing more transactions per block. Incremental increases are planned weekly, aiming for a final target of 1 Ggas/s.

Despite its growth, Base is still in the early stages of decentralization. It operates as a stage 0 optimistic rollup, described as being in a “training wheels” phase. Currently, the network does not have a fraud-proof system, requiring users to rely on the block proposer to submit accurate L1 state roots. 

However, the developers have committed to implementing fraud proofs in the future, with development already in progress, according to L2Beat.