Base Blockchain by Coinbase Witnesses 25% TVL Surge

In the past week, Coinbase’s Ethereum-based Layer-2 network, or the Base platform, has surged in activity, making significant waves in the decentralized finance (DeFi) market.

Base Blockchain’s TVL Surges

According to L2Beat data, there has been a notable 25.23% increase in the Total Value Locked (TVL) within the Base network over the last week, catapulting it to a substantial $558 million.

Re-minting of Native USDC

This surge in TVL has propelled Base ahead of zkSync Era, which previously held $435 million. The primary catalyst for this remarkable growth was the re-minting of native USDC on October 4th, leading to an astounding 470.55% spike, resulting in a total of 159 million USDC locked within the network.

Circle, the issuer of the USDC stablecoin, has unveiled its strategic move to introduce USDC onto the Base platform. Upon its initial launch on August 9, the blockchain network posed limitations for Coinbase users and Circle account holders. 

Base users were unable to directly transfer USDC from their exchange accounts to the Base network and had to rely on a bridged version of USDC referred to as “USDbC” to facilitate U.S. dollar transactions. 

Base: A Product by Coinbase and Optimism

Base is an Ethereum Layer 2 solution that has been jointly developed through a collaboration between the cryptocurrency exchange Coinbase and Optimism. Its core objective is to provide a secure, cost-effective, and user-friendly environment that supports the development of on-chain applications.

Coinbase’s Offshore Derivatives Platform

Coinbase’s offshore derivatives platform grabbed the spotlight, achieving an impressive milestone of $287 million on August 18. This remarkable achievement underscores the platform’s swift adoption and the increasing enthusiasm among traders for its diverse offerings.

Amidst a climate of elevated regulatory ambiguity in its home country, the United States, Coinbase has launched its offshore derivatives platform. This development coincides with the exchange’s ongoing legal dispute with the US Securities and Exchange Commission (SEC), which initiated a lawsuit against Coinbase in June.