Coinbase's Base Surges Past Tron with $6.6 Billion in DeFi Deposits

Coinbase's blockchain, Base, has surpassed Tron with $6.6 billion in DeFi deposits, making it the fifth biggest in DeFi. The surge in deposits is driven by lending protocols, with Morpho and Aave accounting for over 60% of Base's DeFi deposits. Coinbase's fast and low-cost transactions have attracted users, and its vast user base provides a foundation for a thriving marketplace.

Coinbase's Base blockchain has recently overtaken Tron, becoming the fifth-largest in the decentralized finance (DeFi) ecosystem. According to DefiLlama data, Base now holds $6.6 billion in DeFi deposits, surpassing Tron's $5.2 billion [2].

The surge in deposits on Base is primarily driven by lending protocols. Morpho, the largest DeFi protocol on Base, accounts for over $2.5 billion in deposits, while Aave, the second-largest lending protocol, contributes an additional $2.5 billion [2]. This significant growth in DeFi lending is part of a broader trend, with users having invested over $73 billion into lending protocols since January, representing a 52% increase [2].

Coinbase's Base blockchain is a layer 2 solution built on top of Ethereum. Its rapid growth is attributed to powerful network effects, with Coinbase's vast user base providing a solid foundation for a thriving marketplace [2]. The exchange has also driven users to Base through its dedicated mobile app, a rebranded version of Coinbase's wallet, which has significantly boosted deposits to Morpho [2].

While Tron still leads in other metrics such as stablecoin trading volume, the growth of Base highlights the increasing importance of layer 2 solutions in the DeFi ecosystem. Coinbase's focus on fast, low-cost transactions and its strategic partnerships, such as with Optimism, have been key drivers of this growth [2].

The success of Base is part of a broader trend of centralized exchanges launching their own blockchains. Binance, for example, launched BNB Chain in 2017, which is now the third-largest blockchain by DeFi deposits with $9.3 billion worth of deposits [2]. Coinbase's Base is poised to continue growing, leveraging its parent company's extensive user base and resources.

References:
[1] https://thecoinrise.com/metamask-teams-up-with-tron-dao-to-boost-web3/
[2] https://www.dlnews.com/articles/defi/coinbase-base-blockchain-pulls-ahead-of-tron-in-defi-deposits/
[3] https://www.bitdegree.org/crypto/news/coinbase-brings-back-bootstrap-fund-to-boost-usdc-in-defi
[4] https://bitcoinist.com/coinbase-drops-3-billion-to-snag-deribit-in-major-crypto-shake-up/