Coinbase’s Layer 2 network, Base, has experienced an extraordinary surge in activity, attracting users who have bridged nearly $60 million worth of Ether to the blockchain on July 30. Despite not formally announcing its public mainnet launch, Base has quickly become the 10th-largest Layer 2 network by Total Value Locked (TVL) after just one day of inflows, ranking as the third-most active Layer 2 network, processing 7.58 transactions per second (TPS).
A significant portion of the assets bridged over to Base have found their way onto LeetSwap, a decentralized exchange (DEX) that experienced a meteoric rise in popularity, with more than $43 million in TVL on the same day. However, trading on LeetSwap has been paused due to suspicious transactions, underlining the inherent risks of engaging with new and untested protocols.
The burgeoning demand for DeFi on Base is evident, with users’ enthusiastic appetite for the platform’s offerings. This interest is particularly remarkable given that Base has only been accessible to developers since July 12, allowing them to deploy and experiment with their code on the network ahead of the public launch.
LeetSwap’s overnight success in the memecoin sector brought numerous tokens to the platform, with 45 of them posting daily percentage gains exceeding four figures on July 30. Nevertheless, caution is advised, as 20 of these tokens have less than $1 worth of liquidity, leaving users vulnerable to potential rug-pulls.
The standout token on LeetSwap was BALD, which generated a staggering $86.4 million in volume from over 16,400 trades within a 24-hour period and briefly achieved a fully-diluted valuation of around $100 million. However, the token’s value plummeted by more than 90% after the creator removed over $20 million of liquidity, reportedly profiting around $5 million.
The Layer 2 market is fiercely competitive, as leading networks such as Optimism, Polygon, and zkSync race to establish multichain ecosystems of interconnected L2s. Optimism, with its Bedrock upgrade and open-source release of OP Stack, seeks to create a unified “superchain” ecosystem that includes Base. Similarly, Polygon has unveiled its 2.0 roadmap, outlining plans to merge its scaling solutions into an interoperable ecosystem, while zkSync focuses on fostering a “hyperchain” ecosystem of ZK Stack-based networks.
As the cryptocurrency market continues to evolve, investors should remain vigilant about the risks and opportunities presented by new protocols and DeFi platforms. The exponential growth of Base and LeetSwap underscores the potential for significant gains but also emphasizes the need for due diligence and prudent decision-making in this fast-paced and dynamic landscape.