The Layer 2 Ethereum network, Base, which was incubated at Coinbase, has seen a significant surge in its total value locked (TVL) within decentralized applications (dapps). According to data from DeFiLlama, the TVL in Base has reached $1.7 billion, marking a 20% increase since the beginning of May. This notable rise has positioned Base among the top three chains by deposits.

Base's mainnet, which became publicly available in early August 2023, has rapidly ascended the ranks to become the third most valuable Layer 2 blockchain in terms of TVL. It now trails behind Arbitrum, which has $3.81 billion in value locked, and Blast, with $2.26 billion. This surge has allowed Base to surpass deposits on the OP Mainnet, which previously held the third spot. Additionally, Base has become the largest chain within the Superchain ecosystem, a collection of Layer 2 rollups developed using the OP Stack software package.

A significant contributor to Base’s increased TVL is the decentralized exchange Aerodrome, which has amassed $714 million in deposits. Following closely is Uniswap, with $312 million locked in.

Layer 2 chains like Arbitrum, Blast, Base, and OP Mainnet utilize a technology known as optimistic rollups. These rollups execute transactions off the main Ethereum blockchain (off-chain) and only periodically post transaction data on-chain. This method reduces the load on Ethereum's main chain, enabling it to handle higher throughput. The term "optimistic" derives from the default assumption that all transactions are valid. Computation to verify transactions occurs only if someone submits a "fraud proof" suggesting potential issues. If a fraudulent transaction is identified, the network rolls back the transaction.

This approach differs from zero-knowledge rollups, such as zkSync, Linea, and Scroll, which provide cryptographic proofs for transaction validity upfront. Optimistic rollups are favored for their efficiency in handling numerous transactions, contributing to the growing adoption and value locked within these Layer 2 solutions.

Base's rapid rise and significant TVL growth underscore the increasing importance of Layer 2 networks in the Ethereum ecosystem. As these networks continue to develop and attract more users and assets, they play a crucial role in scaling Ethereum and enhancing its capacity to support a wider range of decentralized applications.