Published: November 26, 2024 at 5:11 am
Updated on November 26, 2024 at 5:11 am
I just came across some info about Base, the Layer 2 on Ethereum, and it’s kind of wild. They recently hit a staggering 106.26 transactions per second (TPS). That’s a huge jump from what they were doing just a few months back. Remember when they were only averaging 4 TPS? It’s impressive how quickly things can evolve in this space.
Base’s total value locked (TVL) has also skyrocketed, now sitting at around $10.68 billion. It’s the second largest Ethereum layer-2 after Arbitrum One, which has a TVL of $18.3 billion. You have to give credit where it’s due; the connection with Coinbase and its use of Ethereum’s security features are big factors in that growth.
But here’s the thing: while Solana is known for its high speeds—thanks to its unique Proof of History mechanism—Base offers a different proposition. Solana might be great for high-frequency trading environments, but it has its own set of risks and challenges.
When you stack Base against other Layer-2s like Arbitrum or Optimism, it really does stand out. Most other solutions don’t come close to its current TPS level and low fees. And while Polygon focuses on flexibility and cost-effectiveness, it doesn’t match Base in terms of raw speed.
However, with great speed comes great responsibility—or risk, depending on how you look at it. High TPS can lead to issues like centralization and blockchain bloat if not managed properly.
Base does seem secure since it’s integrated with Ethereum’s Layer 1; all transactions are periodically verified there. But as we’ve seen before in crypto history, prioritizing speed over security can lead to problems down the line.
For those trading in this environment, having strategies in place is crucial. Using stop losses and diversifying your portfolio are just some basic steps traders should consider.
So yeah, Base is making waves with its record TPS and growing TVL. But as with anything in crypto, it’s essential to tread carefully and be aware of both the pros and cons.
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