Base Network TVL Sees Surge, But What’s the Reason Behind It?
The Base Network, a Layer 2 solution aiming to onboard more users to the Web3 ecosystem, has recently seen a surge in its total value locked (TVL). However, there’s more to this story than meets the eye.
Reason Behind Rapid Surge in Base TVL
According to data, the Base TVL has increased by 24.73% to around $555 million. But this surge is primarily due to the re-minting of the native USDC stablecoin on the Base Network.
In early September, Coinbase announced that natively minted USDC tokens would be available on the Base Network. As a result, there was a significant increase of 467.42% in natively minted tokens on the network.
However, it’s important to note that in late September, there was a sharp dip in the Base TVL due to the burning of USDC tokens. The dip was later covered by the re-minting of USDC.
The Growth and Challenges of Base Network
Since its launch, the Base ecosystem has attracted a growing number of users. SocialFi projects like Friend.Tech have contributed to increased on-chain activity on the network. At its peak, Coinbase’s Base Network recorded over 136,000 daily active users.
However, the project also faced its first outage in early September, which lasted nearly 43 minutes.
Hot Take: A Closer Look at Base Network’s TVL
While there has been a recent surge in Base Network’s TVL, it’s essential to zoom out and consider the bigger picture. When looking at a 30-day chart, the TVL appears to be relatively stable and similar to previous levels.
Overall, the Base Network has experienced both growth and challenges as it strives to onboard more users to the Web3 ecosystem.
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