Base, Ethereum’s Layer 2 (L2) scaling solution, has reached a new milestone, becoming the largest L2 network by Total Value Locked (TVL). According to the latest data from DeFiLlama, Base has hit an all-time high TVL of approximately $2.5 billion, surpassing other Ethereum L2 solutions and establishing itself as the dominant force in the Layer 2 ecosystem.
Base is now the Largest L2 @base has reached an all-time high in TVL of ~$2.5 billion, according to @DefiLlama, making it the largest Ethereum Layer 2.Aerodrome accounts for just over half of this TVL, servicing multiple liquidity needs for protocols and traders. pic.twitter.com/LtJeZb4KAB
— Aerodrome (@AerodromeFi) October 16, 2024
According to the firm’s report, this impressive achievement underscores Base’s rapid growth within the Ethereum ecosystem. Launched by Coinbase, Base has been instrumental in alleviating network congestion on the Ethereum mainnet, offering users faster transactions and lower fees while maintaining Ethereum’s security and decentralization.
Hitting $2.5 billion in TVL places Base at the forefront of Ethereum Layer 2 solutions, surpassing major competitors like Arbitrum and Optimism. The surge in TVL highlights the growing demand for scalable blockchain solutions that cater to Ethereum’s vast ecosystem of decentralized applications (dApps) and DeFi protocols.
Aerodrome’s Role in Base’s Success
One of the key contributors to Base’s record TVL is Aerodrome, which accounts for just over half of the $2.5 billion locked in the network. Aerodrome, a decentralized liquidity layer, had become a significant player in Base’s ecosystem by facilitating liquidity provision for various protocols and traders on the platform.
The aerodrome’s ability to efficiently service multiple liquidity needs has made it an integral part of the Base’s infrastructure. It attracts significant capital and liquidity from users seeking to maximize yield and optimize their trading strategies. Its over $1.25 billion contribution to Base’s TVL signals strong confidence in its liquidity services and the broader Base ecosystem.
Base’s rise to the top spot among Ethereum Layer 2s reflects the increasing demand for scalability solutions without compromising Ethereum’s core strengths. Layer 2 networks like Base are designed to process transactions off-chain, which reduces congestion on the leading Ethereum network and lowers gas fees, making it more accessible for users and developers alike.
The growth of Base also mirrors the broader trend of Ethereum scaling solutions gaining traction, particularly as DeFi continues to expand. Investors and developers are flocking to Layer 2 solutions to avoid high gas fees and delays, contributing to the overall success of platforms like Base.
