Trouble for Solana? Why Coinbase’s Base Took Its Place by TVL

Base’s meteoric rise in TVL has sparked concerns about Solana’s dominance and future prospects in the crypto world.

Brian Armstrong of Coinbase wearing a BASE t-shirt, celebrating a small victory.
Created by Gabor Kovacs from DailyCoin
  • Base’s TVL surges to $397.32 million, overtaking Solana’s $358.96 million.
  • The past 30 days marked a significant shift, with Base’s TVL increasing by 97.21%.
  • Solana’s position in the DeFi sector is under scrutiny following Base’s rapid ascent.

Recently, Base’s TVL has surged to $370 million, surpassing Solana’s $358.96 million, leading many to question Solana’s standing in the DeFi sector.

Base’s Rapid Ascent Overtakes Solana

Since its inception in August, Base has experienced a meteoric rise in its Total Value Locked (TVL). On Monday, September 25, Base’s TVL was at a staggering $370 million, reached in just a month since launch. This data places Base ahead of Solana, a major player in the DeFi ecosystem.

Sponsored

In just one month, Base went from a new chain to almost reaching a $400 million TVL on Saturday, September 23. At the time, Base saw a 97.21% increase in TVL in just 30 days. At the same time, Solana’s TVL saw a dip, dropping by 10%. 

How Base Managed to Surpass Solana

The rapid ascent of Base has led many industry experts and enthusiasts to delve deeper into the factors driving its success. Two projects, in particular, have been at the forefront of Base’s TVL surge: Aerodrome Finance and Friend.tech

Aerodrome Finance, a decentralized exchange, has played a pivotal role in Base’s growth, boasting a TVL of $97.83 million. The platform allows users to deposit liquidity and earn AERO tokens, making it a popular choice among DeFi enthusiasts. 

On the other hand, Friend.tech, a decentralized social media platform, has carved a niche for itself with a TVL of $36.53 million. This platform offers users the unique opportunity to tokenize their social networks, potentially disrupting the huge social media industry.

Sponsored

Coinbase has also been instrumental in Base’s rapid ascent in the decentralized finance (DeFi) sector. As detailed in a Coinbase blog post, Base has a strong commitment to decentralization. This has raised eyebrows from some, as Coinbase is a public company that operates a centralized exchange. 

On the Flipside

  • While Base’s growth is commendable, the crypto landscape is known for its volatility. There is no guarantee that Base will keep its place in DeFi. 
  • With its robust ecosystem and community backing, Solana remains a significant player in the DeFi sector. Its current TVL dip might be a temporary setback rather than a long-term decline.

Why This Matters

For crypto traders, the total value locked in an ecosystem indicates its relative strength and utility to users. Base’s surge indicates a growing acceptance of its ecosystem. 

Read more about Coinbase’s Base chain: 
Base Chain: What’s So Special About Coinbase’s Layer-2 Blockchain?

Read more about Arbitrum’s price movements: 
Arbitrum Dips After Treasury Gets $59M Unclaimed Airdrop Tokens

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.