The Layer 2 Ethereum network known as Base, which was developed under Coinbase's guidance, has experienced a substantial increase in the total value locked (TVL) on its platform, reaching $1.7 billion. Data from DeFiLlama reveals a 20% surge in TVL since the start of May. This growth has propelled Base ahead of OP Mainnet (OP) in terms of TVL, establishing itself as the leading network within the Superchain ecosystem, comprising various Layer 2 rollups built using the OP Stack software package.

Base Network's Noteworthy Advancement

Base's mainnet was made accessible to the public in early August 2023 and has swiftly become the third most valuable Layer 2 network in terms of TVL, following Arbitrum (ARB) with $3.81 billion and Blast with $2.26 billion. This achievement underscores the network's rapid adoption and the increasing user trust in its functionalities.

One of the primary factors contributing to the growth of Base's TVL is the decentralized exchange Aerodrome, which has attracted $714 million in deposits. Another significant contributor is Uniswap, with $312 million in deposits. These platforms have been pivotal in drawing users and capital to the Base network.

The rapid expansion of Coinbase's Layer 2 network, elevating it to one of the top three Layer 2 networks by TVL, signifies the growing significance of Layer 2 networks in the Ethereum ecosystem. These solutions alleviate congestion on the main Ethereum Blockchain, enabling higher throughput and more efficient transaction processing. As the ecosystem evolves, the rivalry between optimistic rollups and zkRollups is expected to drive further innovation and enhancements in Blockchain scalability.

Optimistic Rollups and zkRollups

For those unfamiliar, Layer 2 networks such as Arbitrum, Blast, Base, and OP Mainnet are categorized as optimistic rollups. These rollups execute transactions off the main Ethereum Blockchain and periodically publish transaction data on the Ethereum Blockchain. This approach reduces the burden on the main Ethereum Blockchain, allowing it to handle a larger volume of transactions. The term 'optimistic' indicates the default assumption that all transactions are valid unless proven otherwise. Verification is triggered only when a 'fraud proof' indicating potential issues is submitted. In case of fraud detection, the network reverses the fraudulent transaction.

This verification process differs from zero-knowledge rollups (zkRollups) like zkSync, Linea, and Scroll. zkRollups offer cryptographic proofs of transaction validity beforehand, ensuring their accuracy prior to on-chain publication. Both methodologies aim to enhance Ethereum network scalability but employ distinct mechanisms to achieve this objective.