During the past week, Coinbase’s Ethereum-based Layer-2 network, also known as the Base platform, has generated significant activity in the decentralized finance (DeFi) market.
The Total Value Locked (TVL) in the Base network has increased by 25.23 percent over the past week, reaching $558 million, according to data from L2Beat. This expansion has surpassed zkSync Era’s $435 million market cap.
The re-minting of native USDC on the network on October 4 was the primary driver of this increase, resulting in a remarkable 470.55% increase to 159 million USDC.
USDC Lauch on the Base Platform
Circle, the issuer of the USDC stablecoin, announced the introduction of the stablecoin on the Base platform last month. The launch was a strategic move by Circle to improve the usability of USDC by introducing the stablecoin as a native token on additional blockchains. This strategy eliminates the need to bridge using Ethereum tokens.
Coinbase users and Circle account holders could not transfer USDC directly from their exchange accounts to the Base network when the network was initially introduced on August 9. Instead, Base users had to depend on a bridged variant of USDC known as “USDbC” for conducting U.S. dollar transactions.
Base – A Competitive Contender in Definite Space
Base represents an Ethereum Layer 2 solution developed with the cryptocurrency exchange Coinbase and Optimism. Its primary objective is to provide a safe, economically efficient, and user-friendly environment for developing on-chain applications. It is compatible with the Coinbase wallet and all EVM (Ethereum Virtual Machine) wallets.
The Base platform is rapidly becoming a formidable competitor in the DeFi market. As soon as the Base was released in early August, leading market participants began experimenting with the platform. Coca-Cola unveiled its ‘Masterpiece’ NFT collection shortly after that on the Base platform.
Paul Grewal, the head of Coinbase Legal, discussed the possibility of launching a digital token on the Base platform last month. This would considerably enhance the Base network’s utility in the DeFi space.
