Base reached more than 4 billion USD TVL, far surpassing Ethereum and Arbitrum

Base continued to impress when it became the only layer-2 in the top 5 blockchains with the largest TVL last week. Base exceeds 4 billion USD TVL, far surpassing Ethereum and Arbitrum in terms of transaction volume

According to data from L2Beat, layer-2 of the Coinbase exchange saw its total value locked (TVL) surpass $4 billion for the first time - including $1.45 billion bridged and 2.7 billion USD. USD native assets.


Just 2 weeks ago, layer-2 celebrated the milestone of 2 billion USD TVL, now surprisingly it has doubled that number. Over the past 30 days, Base recorded 50.34 million transactions, far exceeding Arbitrum's 40.1 million and Ethereum's 37.9 million.
However, one of the catalysts for growth came from the "wave of memecoins" rushing to the network. As reported at the end of March, Base was under pressure from memecoin transactions after Ethereum completed the Dencun upgrade, activity on Base was at times measured to increase 5 times and caused gas fees to increase unexpectedly. often.

After that, Base had to make an adjustment to raise the Gas Target ceiling to 50% (3.75 mgas/s). Essentially expanding the space for transactions to reduce pressure on gas fees.

After Ethereum implemented the Dencun upgrade and integrated proposal EIP-4844, transaction activity on Layer-2s increased dramatically. However, limitations related to transaction fees caused Base to recently announce a solution to deal with this phenomenon. Base raises gas limit to cope with rising transaction fees

The latest announcement from Layer-2 Base said that after the upgrade when EIP-4844 was integrated, activity on the network increased 5 times and caused transaction fees to increase abnormally. Accordingly, the project will take steps to raise the Gas Target ceiling to 50% (ie to 3.75 mgas/s) on March 27.
Since we rolled out 4844, we’ve seen a 5x increase in demand on @base, driving fees back up

To reduce fees and scale, we’re increasing the gas target 50% (to 3.75 mgas/s) tomorrow and then to 5 mgas/s following an observation period, targeting early next week

— Base 🛡️ (@base) March 26, 2024

The project also said that there will be a monitoring period, and if stable, it will continue to raise the gas ceiling to 5 mgas/s next week. Even, according to developer Jesse Pollak, the network can aim for a limit of 1 Ggas/s (400 times the current level).

2/ to address, we are:

1. prepping to raise @base's gas target to 5-7.5 mgas/s (~2-3x) by load testing to understand impact

2. parallel pathing work that will let us achieve our medium term goal of 1 Ggas/s (~400x)

Expect an update from us shortly on timelines

— Jesse Pollak (jesse.xyz) 🛡️ (@jessepollak) March 25, 2024

Basically, operations on the blockchain will be measured for difficulty and weight in Gas units. Accordingly, if more gas is processed in a block, or a unit of time, it can be understood that the space for transactions will be expanded, thereby reducing the pressure on transaction fees. epidemic when demand suddenly increases.

However, a trade-off of this change is that the computational task for Node units will also be heavier. Therefore, Base has also notified Node operators and is always ready to receive feedback on this transition process.

Previously in January 2024, Ethereum founder Vitalik Buterin also proposed increasing the block size on Layer-1 (through increasing the Gas Limit limit). However, this proposal is still a small operation from individual Validator operators and has not been deployed synchronously across the Ethereum network.