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Base Chain TVL Surpasses Cardano As Interest Swells

Ethereum Layer 2 network “Base” has surpassed Cardano in terms of Total Value Locked (TVL) in just two weeks after its official launch, despite Cardano experiencing a multi-year head start in growth and development. 

Base TVL And Trading Volume Rises Above Cardano

Presently, Cardano is facing criticism from users due to its TVL falling below that of the newly launched project “Base” built by Coinbase. One individual who has publicly criticized the project is Evan Van Ness, a Consensys member and Ethereum advocate.

Van Ness took to his X (formerly Twitter) account which boasts over 103,000 followers to call Cardano a “Zombie chain” because it was below Base by TVL despite being years ahead of the latter.

Base was launched on August 9 and it has experienced impressive growth and momentum since it was introduced to the public. According to Data from DeFillama, the layer 2 network Base recorded a higher trading volume ($26.23 million) than that of the layer 1 network Cardano ($20 million) in less than 24 hours after its official launch. 

In terms of TVL, at the time Van Ness’s chart was shared on X, Base had managed to secure $188 million in TVL since it was introduced, surpassing Cardano which sat at the 14th position by TVL with $160 million.

However, these figures have since been flipped especially since ADA is seeing a green day on Saturday. DefiLlama data currently shows a TVL of $188.46 million for Cardano versus $185.53 million for Base.

Cardano TVL

Nevertheless, data from L2beat points Base’s rise in TVL over the past week puts it ahead of StarkNet and others which made it the fifth largest layer-2 network. 

Base TVL is, however, not the only impressive thing about the L2, as the network has outperformed Cardano by completing more transactions in its first week than Cardano’s transactions in a month. 

Although Base’s TPS may be lower than that of other layer 2 networks like Optimism (OP), investors and market observers believe that the network will experience more adoption as its ecosystem grows.

Rising Average Transactions Per Second

Base has recorded over 11 million transactions in less than a month since its official launch. Base’s average transactions per second over the past few days has been reported to be 15.88, surpassing other layer 2 blockchain Abritrum (AB) and Optimism (OP). The network’s 15.88 also shows an increase of almost 160% in daily Transactions Per Second (TPS). 

Base’s TPS rise was no coincidence as more investors engage in Base’s Friend.tech. Friend.tech is a social market that allows users to buy and sell shares in public figures. It has reportedly garnered more than 100,000 users since its release.

Other protocols such as Synthenix have also shown interest in the Base network, as the protocol recently concluded a governance vote to deploy on Base. Another development is the on-chain analytics firm Arkham Intelligence announcing on X earlier in the week that it will be adding support for Base.

Cardano (ADA) price chart from Tradingview.com (BASE TVL)

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1inch Launches DEX Aggregation Protocol On Base Network

Decentralized exchange (DEX) aggregator 1inch Network has announced the expansion of its operations to Coinbase’s Ethereum layer 2 (L2) network, Base. 

1inch’s Aggregation And Limit Order Protocols Go Live On Base

In a blog post published on Thursday, August 24, 1inch disclosed the deployment of its aggregation protocol and limit order protocol on the Coinbase-incubated Base network.  The project’s team stated that this action is in line with their goal to expand in the decentralized finance (DeFi) industry. 

1inch will begin its operation by aggregating liquidity across 15 decentralized exchanges on the Base network. These DEXs, including Uniswap and SushiSwap, also recently launched on Base.

Serg ej Kunz, co-founder of 1inch Network, stated the following regarding this development:

We are happy to expand to Base. The Base network is a very promising L2 solution, plus it’s incubated by such a major player as Coinbase. In addition, we totally share Base’s philosophy aimed at bringing the next billion users to blockchain.

Before this latest development, 1inch had already been deployed on various networks, including Ethereum, BNB chain, Avalanche, Polygon, Arbitrum, etc. Moreover, it is one of the leading DEX aggregators, with a trading volume of over $1 billion in the past week. 

A Testament To Growing Interest In Base?

The Base network has enjoyed significant interest and growth since opening its doors to the public on the 9th of August. As inferred earlier, 1inch is just one of the numerous prominent decentralized finance protocols launched on the layer 2 network over the past few weeks. 

Notably, the increasing popularity of decentralized social media platform Friend.tech has primarily contributed to Base’s rising network activity in the last few days.  Due to the platform’s growing traction, Base’s daily transaction-per-second (TPS) peaked at 15.88 on Monday, August 21, surpassing Ethereum and other layer 2 networks within the same day.

According to L2Beat data, Base currently sits third on the L2 network activity ranking, with a TPS of 8.6. Overall, this reflects a 73.74% increase in the past seven days. 

Following the BALD meme coin rug pull and other issues, it seemed like Base’s growth would be deterred by an unfavorable reputation. However, with the recent DeFi activity surge, the network appears to rise above every negative sentiment surrounding it.

1inch

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By The Numbers: Deciphering XRP’s Lost Momentum Amid The SEC Lawsuit

The US Securities and Exchange Commission’s (SEC) legal tussle with Ripple over the XRP token may have significantly set its trajectory back in the US market. Crypto lawyer John Deaton explained this in an X (formerly known as Twiter) post uploaded earlier today, shedding light on the ramifications of the SEC’s lawsuit on XRP’s potential adoption in the US.

The comments come when discussions about regulatory clarity in crypto are more intense than ever, with token holders striving for clearer guidelines in the North American country.

The Coinbase Connection

According to Deaton, Coinbase, one of the pioneering cryptocurrency exchanges in the US, was at the forefront of promoting XRP before regulatory challenges arose. Deaton pointed out that before listing XRP, Coinbase proactively reached out to the SEC for clarity.

In a meeting held in January 2019, Coinbase presented its regulatory framework for evaluating digital assets – a framework that had previously garnered admiration from senior SEC staff. With no objections raised by the SEC, Coinbase proceeded to list XRP the following month.

Furthermore, the fact wasn’t just restricted to Coinbase. Payment processing giant MoneyGram, which had established a partnership with Ripple for remittances, disclosed its intentions to integrate with the XRP  Ledger through a formal filing with the SEC.

Much like the Coinbase instance, MoneyGram didn’t receive any complaint from the regulatory body either, but the ensuing legal battle halted the company’s plans. 

The Controversial Lawsuit And Its Implications For XRP

Contrary to these initial interactions, the SEC filed a lawsuit against Ripple in December 2020. Deaton emphasized that several industry stakeholders, including the lawyers at MoneyGram and Coinbase, assessed XRP and determined it was not a security. Yet, the SEC’s lawsuit against Ripple painted a contrasting narrative.

The following legal battle created was felt across the crypto industry. It raised questions about the regulatory landscape and brought forth discussions about the nature of cryptocurrencies and how they are classified in the US. 

While Ripple has seen commendable success outside the US, Deaton underscored that the lawsuit undeniably hindered XRP’s adoption within the country.

From Deaton’s perspective, the evidence gathered over the past three years suggested that the lawsuit may have been part of a strategy. While it remains speculative to conclude the exact motivations behind the SEC’s actions, the impact on XRP’s US adoption and the broader crypto market has been palpable.

Deaton concluded:

It is so clear the lawsuit was used as a weapon. I said it only 9 days after the Ripple lawsuit in a federal pleading, when I filed the Writ of Mandamus against the SEC, and all the evidence uncovered during the last 3 years proves it to be true.

XRP price chart on TradingView

Featured image from Unsplash, Chart from TradingView

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The Protocol: Blockchains Keep Launching, From Sei to Shibarium

In this week’s issue, we cover Coinbase’s launch of “Base,” a layer-2 network atop Ethereum, along with the crypto community’s reaction to PayPal’s new stablecoin and the brouhaha over Matter Labs’ use of Polygon-crafted open-source software. The Protocol is CoinDesk’s weekly newsletter devoted to blockchain and crypto technology.