Base Surpasses $4B TVL as Protocol Upgrades Boost Performance, Outpacing Ethereum Layer 2 Rivals
Base, Coinbase’s Ethereum Layer 2 network, has seen its total value locked (TVL) climb above $4 billion—its highest level since late 2024—following significant protocol upgrades aimed at reducing transaction fees, increasing speed, and enhancing decentralization. The project, led by Jesse Pollak, has outlined an ambitious roadmap targeting sub-200 millisecond confirmation times, fees under one cent, and throughput up to 200 transactions per second. Future plans also focus on eliminating sandwich attacks and promoting fair execution, with a two-phase decentralization process underway. Pollak has suggested Base could eventually reach 1 million transactions per second. These advancements have restored investor confidence and reversed recent stagnation in network liquidity, enabling Base to surpass other leading Ethereum Layer 2 projects like Arbitrum and Optimism in both TVL and daily transactions. While Ethereum itself continues scaling through its own upgrades (Pectra and Fusaka), Base’s accelerated progress positions it as a major contender in the Layer 2 ecosystem. Crypto traders should closely watch Base’s developments for their potential to impact Layer 2 valuations, user adoption patterns, and broader market sentiment toward Ethereum scalability.
Bullish
The news that Base has surpassed $4 billion in total value locked (TVL) after implementing major protocol upgrades signals strong investor confidence and renewed growth momentum. These upgrades, which include lowered fees, faster transaction speeds, and concrete steps toward greater decentralization, have positioned Base to outperform competitors like Arbitrum and Optimism on key network metrics. The rapid rise in both TVL and daily transactions indicates increased user and developer engagement, which typically supports price appreciation and sustained activity. While long-term success will depend on maintaining high user retention and continued economic activity, the short-term impact is clearly positive. For traders, these developments suggest bullish sentiment around Base’s ecosystem token (if and when tradable), as well as a competitive edge in the Layer 2 landscape.