Base Network, an Optimistic Rollup project incubated by Coinbase (NASDAQ: COIN) and currently at Stage 0 maturity, has witnessed a remarkable surge in its Total Value Locked (TVL). This surge comes despite the network’s recent major outage on September 5th. Within a week following the outage, Base Network’s TVL increased by more than 25% to reach $557 million, surpassing Ethereum Layer 2 networks like zkSync Era that leverage Zero-Knowledge Proofs technology.
The growth in TVL can be largely attributed to the reminting of over 159 million native stablecoin USDC on the Base network. Although the number of daily active users declined from over 100,000 in August to below the peak of 145,000 on August 21st, according to DUNE analytics, the network has witnessed significant developments.
One noteworthy development is the issuance of Backed Finance’s first tokenized security, bIB01, which represents BlackRock’s iShares bond ETF. This marks a significant milestone in the tokenization of Real World Assets (RWAs). Additionally, the launch of Friend.tech on the Base network is another noteworthy achievement.
The rapid growth and continued development of the Base network underscore its resilience and potential to compete with established Layer 2 solutions. Despite being in its early stages and facing technical challenges, the network has managed to attract substantial liquidity and remains at the forefront of innovation in the DeFi (Decentralized Finance) space.