Base TVL up $104 million in May, in line to make Coinbase a DeFi powerhouse as stock price skyrockets

Base, a low-cost Ethereum Layer-2 (L2) solution built to scale Coinbase’s on-chain user base by making transactions faster continues to be a key value addition for the trading platform. Coinbase first quarter (Q1) earnings report points to this effect, showing Base has played a huge role in the exchange’s strides to become a decentralized finance (DeFi) powerhouse.

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Base TVL rises $104 million in four days

Data according to DeFi dashboard DefiLlama shows that Base Total Value Locked (TVL) has jumped a stark $104 million between May 1 ($1.379 billion) and May 4 ($1.483 billion). TVL surge indicates that more assets are being deposited and locked into that particular DeFi protocol. It signifies growing user participation and confidence in the platform. It may also indicate increased liquidity and trading volume within the protocol, which can potentially lead to higher returns for users and a stronger ecosystem overall.

Base TVL

According to Coinbase Q1 earnings report released on May 2, the Base platform continues to show great potential, and could make Coinbase an even bigger powerhouse in the DeFi space than it already is. Based on the Q1 report, there has been a significant surge in volume on Base, going as far as to surpass  its peers and competitors in the space, like Optimism (OP) and Arbitrum (ARB).

The success of the Base has been influenced hugely by the rollout of Ethereum’s Dencun upgrade. Since the upgrade, Base has consistently processed more than 3 million transactions daily. This has lifted its fee revenue significantly. The Q1 report shows DeFi crypto exchanges on Base recording daily trading volumes upwards of $1 billion, although not enough to reach what is recorded on Coinbase’s main centralized exchange trading volumes.

Base platform’s revenue spike comes as it supports key DeFi protocols, with around 250 protocols running on the network. When Base debuted, Coinbase indicated plans to make it decentralized, creating an open, global crypto ecosystem that leverages the security of the Ethereum mainnet, easily accessible.

More closely, Base has played a part in Coinbase generating $1.6 billion in revenue during Q1 of 2024, beating expectations by almost 20%. This is compared to the $736 million recorded in the same period in 2023. Transaction revenue across both institutional and consumer clients increased to $1.08 billion.

Sustained success on Base platform puts Coinbase on course to become the “NVIDIA of DeFi,” Cointelegraph notes, with Base as a big growth driver. 

Coinbase Coin stock price is up 2.16% in the past 24 hours to trade for $223.25 as of the time of this publication.