In a surprising turn of events, Ethereum’s recently launched Layer 2 network, “Base,” has swiftly outpaced Cardano in terms of Total Value Locked (TVL) within just two weeks of its official launch. Despite Cardano’s multi-year head start in growth and development, Base has managed to attract significant attention and investment, causing a stir in the cryptocurrency community.
Base’s Rapid Rise in TVL and Trading Volume
Base, introduced by Coinbase on August 9, has witnessed impressive growth since its inception. According to data from DeFiLlama, the Layer 2 network Base achieved a remarkable trading volume of $26.23 million within 24 hours of launch, surpassing Cardano’s Layer 1 network, which recorded $20 million in the same timeframe. Additionally, Base secured a TVL of $188 million, overtaking Cardano’s position by TVL at the time.
Cardano’s Response and Fluctuating Figures
Cardano faced criticism from users as its TVL dipped below that of the newly introduced Base. However, in the subsequent days, Cardano saw a resurgence, and as of now, DeFiLlama data indicates a TVL of $188.46 million for Cardano and $185.53 million for Base. This back-and-forth highlights the competitive nature of the cryptocurrency space.
Base’s Remarkable Performance and Transactions
Base’s rise in TVL propelled it to the fifth-largest Layer 2 network, according to L2beat data. Notably, Base achieved an impressive feat by completing over 11 million transactions in less than a month since its launch. Its average transactions per second (TPS) of 15.88 surpassed other Layer 2 blockchains such as Arbitrum and Optimism, marking an increase of nearly 160% in daily TPS. This surge in TPS can be attributed to the engagement of investors in Base’s innovative platform, Friend.tech.
Friend.tech and Growing Ecosystem
Friend.tech, a social market hosted on the Base network, has garnered considerable attention, attracting more than 100,000 users since its release. The platform enables users to buy and sell shares in public figures, adding a unique social dimension to Base’s ecosystem. Additionally, the network’s appeal has led protocols like Synthenix to express interest in deploying on Base, and on-chain analytics firm Arkham Intelligence announced its support for Base.
Future Prospects and Adoption
Despite Base’s comparatively lower transactions per second when compared to some Layer 2 networks, investors and market observers remain optimistic about its adoption potential as its ecosystem continues to expand. The rapid growth of transactions and engagement on the platform, along with strategic partnerships like the one with Synthenix, are contributing to the network’s increasing prominence.
Ethereum’s Base Layer 2 network has quickly emerged as a formidable contender in the cryptocurrency space, surpassing Cardano’s TVL shortly after its launch. With its impressive transactions and engagement metrics, Base is capturing the attention of both users and industry players alike. As the network’s ecosystem continues to develop and new partnerships are formed, Base’s journey is one to watch closely.