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Coinbase’s Layer 2 network, Base, has seen an impressive increase in activity, drawing users who have transferred nearly $60 million in Ether to the blockchain on July 30. Although there has been no formal announcement regarding its public mainnet launch, Base has swiftly ascended to become the 10th-largest Layer 2 network by Total Value Locked (TVL) after just one day of inflows, ranking as the third-most active Layer 2 network, handling 7.58 transactions per second (TPS).
A considerable amount of the assets transferred to Base has been utilized on LeetSwap, a decentralized exchange (DEX) that has gained significant traction, boasting over $43 million in TVL on the same day. However, trading on LeetSwap has been halted due to questionable transactions, highlighting the inherent risks associated with engaging with new and unproven protocols.
The increasing interest in DeFi on Base is clear, with users showing a strong desire for the platform’s offerings. This enthusiasm is particularly noteworthy considering that Base has only been available to developers since July 12, enabling them to deploy and test their code on the network prior to the public launch.
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LeetSwap’s rapid success in the memecoin sector introduced numerous tokens to the platform, with 45 of them recording daily percentage increases exceeding four figures on July 30. Nonetheless, caution is warranted, as 20 of these tokens possess less than $1 in liquidity, exposing users to potential rug-pulls.
The prominent token on LeetSwap was BALD, which achieved an astonishing $86.4 million in volume from over 16,400 trades within a 24-hour timeframe and briefly reached a fully-diluted valuation of approximately $100 million. However, the token’s value dropped by more than 90% after the creator withdrew over $20 million in liquidity, reportedly earning around $5 million.
The Layer 2 market is highly competitive, with leading networks such as Optimism, Polygon, and zkSync striving to build multichain ecosystems of interconnected L2s. Optimism, through its Bedrock upgrade and open-source release of OP Stack, aims to create a cohesive “superchain” ecosystem that incorporates Base. Likewise, Polygon has introduced its 2.0 roadmap, detailing plans to integrate its scaling solutions into an interoperable ecosystem, while zkSync is focused on developing a “hyperchain” ecosystem of ZK Stack-based networks.
As the cryptocurrency market continues to progress, investors should remain alert to the risks and opportunities presented by emerging protocols and DeFi platforms. The rapid expansion of Base and LeetSwap highlights the potential for substantial gains but also stresses the importance of due diligence and careful decision-making in this fast-evolving and dynamic environment.
The post Coinbase’s Layer 2 Network, Base, Witnessing Explosive Growth in DeFi Activity appeared first on BitcoinWorld.
