The cryptocurrency ecosystem continues to evolve at a rapid pace, and one of the most notable developments in early 2025 is the surge of Coinbase’s Base Layer 2 network surpassing $1 billion in Total Value Locked (TVL). This milestone reflects growing confidence and adoption within the decentralized finance (DeFi) space, with Base emerging as a key player among Ethereum Layer 2 solutions.
According to the latest data from DeFiLlama, Base’s TVL has reached $1.062 billion, signaling strong user engagement and developer interest. This growth is not just a number—it represents real economic activity, user trust, and strategic ecosystem development. At the heart of this momentum lies Aerodrome, a decentralized exchange that has become the cornerstone of Base’s DeFi landscape.
What Is Base?
Base is an Ethereum Layer 2 blockchain developed by Coinbase, one of the world’s most recognized cryptocurrency exchanges. Launched publicly on August 9, 2023, Base marked a historic moment as the first blockchain introduced by a publicly traded company. Built using the OP Stack—a shared framework also used by Optimism—it offers faster transactions, lower fees, and seamless integration with Ethereum’s security.
From day one, Base was designed to onboard millions of users into Web3. With Coinbase’s massive user base and infrastructure, the network was poised for rapid adoption. And that’s exactly what we’ve seen unfold over the past 18 months.
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Aerodrome: The Engine Behind Base’s Growth
While multiple factors contribute to Base’s success, Aerodrome Finance stands out as the primary driver behind its explosive TVL growth. As of early 2025, Aerodrome accounts for $510.3 million in TVL—nearly half of Base’s total locked value.
Originally inspired by Velodrome Finance on Optimism, Aerodrome launched on Base in September 2023 as a fork with enhanced mechanics tailored to Base’s user base. It quickly gained traction due to its efficient automated market maker (AMM) model, attractive liquidity incentives, and innovative vote-escrowed tokenomics (veAERO).
This governance model encourages long-term participation: users lock up AERO tokens to receive veAERO, which grants them voting power and a share of protocol fees. The result? Stronger alignment between users, liquidity providers, and developers—fueling sustainable growth.
In just a few months, Aerodrome’s TVL skyrocketed from $125 million in February** to over **$500 million, demonstrating compounding network effects and increasing trust in the platform.
Why Users Are Choosing Aerodrome on Base
Several key features make Aerodrome a preferred destination for DeFi users:
- Low Transaction Costs: Leveraging Base’s Layer 2 efficiency, swaps and deposits cost a fraction of what they would on Ethereum mainnet.
- High-Yield Incentives: Liquidity mining programs reward providers with AERO tokens, creating strong short-term and long-term value propositions.
- Governance Participation: veAERO holders influence fee distribution, gauge weights, and protocol upgrades—putting power directly in the hands of the community.
- Seamless UX Integration: Many wallets and DeFi dashboards now natively support Aerodrome, reducing friction for new users.
This combination has turned Aerodrome into more than just a DEX—it’s becoming a DeFi hub for yield seekers, traders, and governance enthusiasts alike.
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Base Rises Among Layer 2 Giants
In the competitive world of Ethereum Layer 2 blockchains, ranking is determined by more than just hype—it’s about real usage and capital deployment. As of early 2025, Base ranks fourth by TVL, trailing only Arbitrum, Optimism, and Blast.
This positioning is impressive considering Base’s relatively recent launch. Its ascent reflects not only Coinbase’s brand strength but also effective ecosystem incentives and developer support.
Key Drivers of Base’s Popularity:
- Dencun Upgrade Impact: The Ethereum Dencun upgrade significantly reduced data availability costs for Layer 2s through proto-danksharding. This made transactions cheaper and faster on Base, attracting new users and dApps.
- Developer Incentives: Coinbase has funded numerous grants and hackathons to encourage builders to launch on Base.
- Consumer-Friendly Onboarding: With features like social logins and fiat on-ramps via Coinbase.com, new users can enter DeFi with minimal friction.
These elements have created a flywheel effect: more apps → more users → more liquidity → more apps.
Security and Trust: A Competitive Edge
One often-overlooked advantage of Base is its sequencer-level controls, which allow for enhanced security measures without compromising decentralization in the long term.
During the Munchables NFT exploit in late 2024, Base’s sequencer implemented transaction filtering to block malicious actors from cashing out stolen funds. This proactive measure helped prevent an estimated $60 million loss, showcasing how responsible design can protect users during critical events.
While some purists debate the trade-offs of temporary centralization, incidents like this highlight the value of having safety mechanisms during emergencies—especially as mainstream users enter Web3.
Core Keywords Driving Visibility
To ensure this content aligns with search intent and ranks effectively, here are the core SEO keywords naturally integrated throughout:
- Ethereum Layer 2
- Base Network
- Aerodrome Finance
- Total Value Locked (TVL)
- DeFi on Base
- Coinbase blockchain
- DEX on Layer 2
- veAERO governance
These terms reflect high-volume queries from users researching DeFi opportunities, Layer 2 comparisons, and emerging blockchain ecosystems.
Frequently Asked Questions
Q: What is Base Network?
A: Base is an Ethereum Layer 2 blockchain developed by Coinbase to scale Ethereum with lower fees and faster transactions while maintaining security.
Q: How did Aerodrome contribute to Base’s $1B TVL?
A: Aerodrome Finance accounts for nearly half of Base’s TVL ($510M+) by offering high-yield liquidity pools, low-cost swaps, and a vote-escrowed governance model that incentivizes long-term participation.
Q: Is Base fully decentralized?
A: Currently, Base uses a centralized sequencer for performance and security reasons but is committed to full decentralization over time as part of its long-term roadmap.
Q: Can I use my Coinbase account with Base?
A: Yes—Base integrates seamlessly with Coinbase Wallet and supports easy fiat on-ramps through the Coinbase app, simplifying access for millions of users.
Q: What makes Aerodrome different from other DEXs?
A: Aerodrome uses veAERO tokenomics, where users lock tokens to gain voting power and fee rewards—creating stronger alignment between stakeholders and promoting sustainable growth.
Q: How does the Dencun upgrade benefit Base?
A: Dencun introduced proto-danksharding, drastically lowering data storage costs for Layer 2 networks like Base, resulting in cheaper transactions and improved scalability.
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Final Thoughts
The journey of Base from launch to a billion-dollar DeFi ecosystem in under two years underscores a pivotal shift in blockchain adoption. Backed by Coinbase’s infrastructure and accelerated by community-driven projects like Aerodrome, Base is proving that user-centric design, economic incentives, and strategic timing can drive exponential growth.
As Ethereum continues to scale and DeFi innovation accelerates, networks like Base will play a crucial role in bringing crypto to the mainstream. Whether you're a developer, investor, or curious newcomer, now is an exciting time to explore what Base—and its thriving DeFi ecosystem—has to offer.
Note: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before engaging with any blockchain project or financial product.