Coinbase’s Base has jumped well ahead of Tron and some other counterparts with $6.6 billion in DeFi deposits.
By Godfrey Benjamin
Editor Hamza Tariq
Updated
3 mins read
Coinbase Layer-2 solution, Base Network, has outperformed its counterparts, including Justin Sun’s Tron Network.
It locked in a total of $6.6 billion in deposits, per insights from DeFiLlama data. This comes a few weeks after the L2 briefly suffered a downturn.
Base has become the fifth-largest blockchain after surpassing $6.6 billion in deposits. This achievement has propelled the L2 way above Tron TRX $0.36 24h volatility: 2.3% Market cap: $33.60 B Vol. 24h: $1.17 B .
A spokesperson for DeFi lender Morpho said Base is excelling at promoting native lending and borrowing protocols.
Morpho is the biggest DeFi protocol on Base, holding over $2.5 billion in deposits. The spokesmen went further to point out how Morpho’s integration with Coinbase, which allows customers to borrow stablecoins against their Bitcoin BTC $114 137 24h volatility: 1.1% Market cap: $2.27 T Vol. 24h: $41.56 B , has been a big contributor to deposits.
So far, it has contributed about $1 billion to Morpho’s Base Total Value Locked (TVL).
Up to 60% of Base’s DeFi deposits can be attributed to Morpho and Aave AAVE $298.6 24h volatility: 7.0% Market cap: $4.54 B Vol. 24h: $509.04 M , the second-largest lending protocol on the blockchain.
The reported DeFi deposits on Base are an indication that there have been some improvements in the ecosystem.
Recently, the L2 blockchain suffered a block production outage, although it only lasted for almost 30 minutes.
Base’s incident status page claimed that the outage was triggered by an “unsafe head delay,” a technical fault that interferes with the network’s ability to confirm and produce blocks.
Operations like deposits, withdrawals, and flashblock operations were all impacted by the situation. The incident negatively impacted transactions and decentralized applications (dApps) on the Ethereum-based [NC] platform.
Base experienced a similar occurrence in September 2023, right after its launch, an event that lasted for 45 minutes at the time.
Apart from Tron, Base is dominating L2 scaling solutions like Arbitrum ARB $0.51 24h volatility: 7.4% Market cap: $2.71 B Vol. 24h: $507.60 M and Optimism OP $0.73 24h volatility: 5.4% Market cap: $1.27 B Vol. 24h: $148.05 M .
The blockchain’s rapid growth is triggered by several factors, including the network effect, which Mehdi Lebbar, co-founder of YO Protocol, pointed out.
While Base has surpassed Tron in terms of DeFi deposits, the latter is thriving in other areas. It still beats Coinbase’s Base in stablecoin trading volume.
Justin Sun’s Tron has seen a meteoric rise, even though it has not outperformed Base. Earlier this week, the Tron Network announced that it has formed a strategic partnership with MetaMask, which allows it to integrate TRX directly into the platform.
This integration with the world’s leading self-custodial crypto wallet will significantly strengthen user accessibility and increase the likelihood of higher on-chain adoption.
Such moves have been crucial to positioning TRX for more market gains. The TRX price has maintained support around $0.35, limiting intraday losses to less than 1%.
This price action leans toward consolidation, hovering around $0.35 after repeated rejections near $0.364 resistance. Its market capitalization has seen a slight drop, but TRX’s 24-hour trading volume is up by 17.32% and resting at $1.24 billion.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
