Coinbase’s Ethereum layer-2 protocol, Base, has recorded a significant rise in its total value locked (TVL) once again, hitting $558 million this time.
According to data from Ethereum layer-2 analytics platform L2Beat, Base’s TVL surged by more than 25% in the past seven days, surpassing Matter Labs’ zero-knowledge (zk) rollup tech-powered scaling solution, zkSync Era, for the second time.
Base’s TVL Hits $558M
Since Base’s launch two months ago, the network has seen tremendous growth and development, hitting several milestones. The current surge in TVL is attributed to the re-minting of native USD Coin (USDC) on the network, bringing the chain’s stash to 159 million USDC.
Last month, USDC issuing company Circle announced it would launch the stablecoin on Base and Optimism to improve its utility and eliminate the need for bridged Ethereum tokens. At the time, Base used USD Base Coin (USDbC), a bridged version of USDC that served as a stablecoin solution for developers on the network. The bridged contract allowed users to move USDC from Ethereum to Base.
Following Circle’s announcement, the company burned the USDbC on the Base network in preparation for the native USDC launch. The burn reduced 160 million USDbC to roughly 30 million within a day and heavily impacted Base’s TVL as it fell by more than 18% to $437 million within seven days.
In contrast, the TVL of zkSync Era rose by 15% and surpassed Base, which fell to the fourth position on the list of Optimistic rollups. Among the top five, Base was the only project in red.
With the re-minting of native USDC on the Base, the network’s TVL has risen again, beating zkSync Era, currently at $435 million.
Ethereum’s L2 Networks On Fire
Base has been on fire since August despite the current bear season. Last month, the network and zkSync Era surpassed Ethereum’s Transactions Per Second (TPS) rate of 10.18.
CryptoPotato reported that within a certain week, Base recorded a 49% increase and achieved a TPS of 12.93, while zkSync Era followed closely with a TPS of 12.62. The former also hit 1.8 million in daily transactions within the same period.
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