Base, Coinbase’s Layer-2 blockchain built on Optimism’s OP Stack, is making headlines with its latest infrastructure upgrades. The platform, designed to scale Ethereum and reduce transaction costs, recently crossed $4 billion in Total Value Locked (TVL) — a major milestone that positions it as a serious player in the L2 ecosystem.
“Base is now the second-largest Ethereum Layer 2 by TVL,” according to L2Beat, trailing only Arbitrum.
What’s New in Base’s Upgrade Plan?
Base’s development team announced a series of technical improvements aimed at lowering gas fees, accelerating transaction speeds, and enhancing decentralization. These upgrades include:
- Integration of a new data compression protocol, reducing calldata size and gas costs
- Optimistic rollup enhancements, to support faster finality and throughput
- Improved node infrastructure, paving the way for increased decentralization
“The upgrades will help reduce average transaction costs by up to 35%,” according to developers from Coinbase and the OP Labs team.
These steps signal that Base is not just scaling Ethereum — it’s evolving to challenge it.
TVL Hits $4 Billion: Why Investors Are Paying Attention
Base’s $4 billion TVL reflects growing user confidence, especially among DeFi protocols and NFT marketplaces. The L2 platform has seen a surge in ecosystem activity, with notable projects like Aerodrome, Friend.tech, and Uniswap launching on Base.
“Liquidity is flowing in, and developers are building at a rapid pace,” noted Coinbase’s head of protocols.
The increase in TVL also coincides with Ethereum’s network congestion and high fees, making Base a more attractive alternative for users and builders alike.
Base vs Ethereum: A Real Threat?
While Base is built to complement Ethereum, its increasing efficiency and scale raise questions about whether it could eventually compete with its parent chain.
Base processes nearly 20 transactions per second on average, compared to Ethereum’s 12-14 TPS.
Base’s rapid rise
As of May 2025, Base has solidified its position as a significant force in the Layer 2 ecosystem. This momentum puts Base ahead of rivals like Arbitrum [ARB] and Optimism [OP] in terms of total value locked (TVL) and daily transaction activity.
Ethereum [ETH] isn’t idle either. The recent Pectra upgrade delivered modest improvements to scalability — enhancing blob production and incrementally advancing smart contract wallet functionality.
Conclusion
The latest upgrades show that Base is evolving beyond its initial Coinbase-backed identity, leaning into technical innovation and community-driven development.
With lower fees, higher speeds, and growing decentralization, Base is positioning itself as a top-tier Layer 2 — and possibly more.
As Ethereum’s rollup-centric future unfolds, Base’s momentum could make it a foundational pillar in the next generation of decentralized apps.